Kutztown University - Policy 1996-123

UNIVERSITY ASSET RESPONSIBILITY

A.       Purpose

This policy outlines procedures and other guidelines to ensure the safeguarding of University assets. 

B.       Scope

This policy applies to all university-owned assets such as vehicles, equipment, furnishings and computer software.

C.       Definitions

Bar Code -                              A permanent label that displays a laser scan coding as well as a readable number.  This bar code is used to track capital assets.  This number will show in the SAP asset record under the inventory number field.

Capital Assets -                      Assets with a purchased value of at least $5,000 and an expected life greater than 2 years.  Capital assets include equipment, furnishings, vehicles, computer software, as well as buildings and improvements.

Capital Lease -                        Capital Leases are assets valued over $5,000 which are paid in installments, but considered assets of the university according to generally accepted accounting principles (GAAP).  The factors determining this include length of contract and percentage of total value paid over life of asset.

Cycle Counting -                     Refers to verification of the existence and location of departmental assets via physical counts.  These counts are performed constantly (in cycles) for various areas.

Low Value Assets                   Low value assets (LVA) includes equipment and furnishings with a value equal to or greater than $2,500 but less than $5,000 per item.  These items may be  tracked for special inventory purposes such as maintenance contracts.  Not all assets in this value range will be tracked. 

Minor Assets -                         Equipment and furnishings with a value of less than $2,500.00 per item. The movement and disposal of these are controlled, but are not included in the SAP asset records, except office machines on a maintenance contract. 

Non-Tag Asset -                      Refers to assets that are given an SAP asset number, but cannot accept a physical tag, ie. a carpet, building  improvement or computer software.

Retired -                                  An asset which is no longer used by any university department, regardless of its condition, and has been deactivated in the SAP system.

Scrap -                                   An item which is destroyed or broken beyond repair.  It also refers to items which are technically obsolete.

Surplus -                                Refers to assets for which the original department has no further use.  These may be sent to surplus storage or assigned for use by another department. 

D.        Policy

• Purchasing of Assets and Equipment
  Purchasing of assets and equipment should be done in accordance with the policies included in the University Purchasing Manual.

• Personal Use of University Assets
  University assets may not be used for personal purposes except for the reasonable use of telephones for personal calls and/or computers for communications on personal business where such use does not interfere with the efficiency of the operation.  Any costs associated with the personal use of such assets (such as long distance charges) must be paid by the user.

• Assigining Control Numbers

  Capital assets are assigned a bar-code tag except for non-tag assets such as buildings, software, etc.  These assets are tracked using these numbers until disposed.  The bar-code number is tracked as the inventory number within SAP. 

  
  These asset tags are assigned as part of the purchasing process and are physically placed on the assets by the accounting department upon receipt.  Information Technology is responsible for the tracking of all personal computers and laptop units, both purchased and leased, and will assign inventory control numbers to such.

 Mobility, Surplusing, and Disposition of Assets

• Moving Assets

A departmental representative must utilize the TMA work order system to request all planned moves of items including transfers to other departments as well as within a department.  This request is completed in accordance to work order guidelines found in the following link:  

                    http://www.kutztown.edu/admin/facilities/building/AssetPolicy.shtml

Accepted work orders are scheduled by the Facilities work order control center.  Work order status may be checked via TMA reports.

•  Surplusing Assets

Contact the fiscal assistant at 3.4135 who will attempt to match the surplused item to another department that has identified a need (see availability below).  If no match is identified, a departmental representative must utilize the TMA work order system to request the surplusing of departmental assets.  This request is completed in accordance to work order guidelines under “moving assets to the warehouse” found in the aforementioned link.

 

Availability of Surplus Assets

Should your department have a specific need for a surplused asset, contact the fiscal assistant at 3.4135 who maintains a listing of departmental needs and will attempt to match the need with future surplused assets.  Monthly inspections of available surplus is provided for interested KU departments.  Desired items are marked and the requesting department originates a TMA work order request in order to have assets moved to their location.

 

Liquidation of Surplus Assets

Surplus assets are stored in a warehouse location if available and will   be retained for at least 3 (three) months.  Should no warehouse space be available, the items must remain in a departmental location until space becomes available.  An inventory of these surplus items will be maintained by the fiscal assistant.  Because of limited warehouse space, surplus assets stored in excess of 3 (three) months will be liquidated utilizing the following steps.

Required:

1. Surplus assets may be offered to the other SSHE universities for items useable by other SSHE entities.  The General Accounting Manager may offer these items at his discretion, free of charge, or may set a value on the items.

Optional:

2. Bids for the sale of assets to outside organizations may be solicited and awarded by the General Accounting Manager.  Departments may assist in the procurement of bids.  All planned sales of assets should be communicated by the owner department to the General Accounting Manager prior to the bidding process.   Please note that the State Adverse Interest law precludes any university employee from purchasing or receiving state property.

3. Donation of items to not-for-profit agencies may be investigated.  A file of donee requests is maintained by the fiscal assistant.

Should none of the above measures be successful, the assets will be disposed.  Scrapped assets should be securely stored in the facilities area until the contracted waste hauler removes them.

• Discarding Assets

The item must meet the university’s definition of scrap.  If either of the following conditions are true, the item will be designated “scrap”. 

                                    (a)  the item is destroyed or broken beyond repair

                                    (b)  the item is technically obsolete

A TMA work order requesting disposal as determined above should be  completed.  Accepted work orders are scheduled by the Facilities work order control center.  Work order status may be checked via TMA reports.  All asset disposals must be input into TMA. 

Assets Taken Off-Campus and Reporting of Stolen Assets

• Assets Taken Off-Campus

Whenever an asset is taken off and remains off-campus for more than one day, an “Off-Campus Assets” form (OCA) (Exhibit Two) must be completed.  Departments must send the form to the fiscal assistant for approval prior to temporary removal.  If approved, the yellow and pink copies of the OCA will be returned to the department (the yellow copy for the department and the pink copy to be given to the borrower).  Upon return of the asset, the field showing date of return should be updated on the yellow copy of the OCA, final location noted, and the yellow copy of the OCA should be sent back to the fiscal assistant to verify return.

Exception: Employees need not complete an OCA for laptop computers as well as cellular telephones.  These items are assigned to individuals, not locations.

Stewardship of these departmental assets is the responsibility of the borrower and must be approved by the department chairperson and dean.  Certain departments, where the loan of equipment is a necessary part of student instruction, or as a service provided to other departments, may utilize their own system of sign-outs and security upon approval by the Director of Accounting.  Items such as telecommunications equipment for outside lab work is one example.  Should no departmental system be in place, the OCA form must be utilized.

• Reporting of Stolen Assets

Stolen assets should be immediately reported to the department of Public Safety via telephone.  Email a notification of the stolen item(s) to the fiscal assistant who may assist in providing detail by researching asset tag numbers and serial numbers for all capital assets.  If the replacement value of the stolen item is $5,000 or above, the fiscal assistant submits an insurance claim with Administrative Services.                    

E.         Effective date:

            May 1, 1997

F.         Adopted by:

President David McFarland

            May 1, 1997

G:        Revised by Gerald L. Silberman

            May 8, 2006

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