In order to properly identify, classify, and record the assets of the college, a physical inventory of all college-owned and purchased furniture and equipment is performed on an annual basis for capital inventory (over $5,000) and on a bi-annual basis for non-capital inventory (over $500). For the appropriate use of college resources and property, see procedure 63.09.09.
All areas of each building are assigned an inventory monitor. It is the responsibility of the monitors to complete a physical inventory of their areas each year. They are also responsible for notifying plant operations via a work order when an inventoried piece of furniture or equipment is to be moved out of their area, either for disposal (see 70.02.02 Disposal of College Assets) or transfer to another inventory monitor’s area. In addition, they are responsible for notifying the finance personnel responsible for inventory (inventory coordinator) should an inventoried item be lost or damaged.
Adding Capital Furniture and Equipment to the Inventory
Approval by the vice president of information technology or designee is required for all computer hardware and software purchases. Approval by the director of instructional media and the vice president of information technology or designees are required on all audiovisual purchases. Such approvals are required before a purchase order can be issued.
The inventory coordinator will provide inventory tags to be attached to capital furniture and equipment, whenever possible. In some instances, such as internal components to a computer, placing inventory tags is not practical. Each inventory tag has a unique number, which is then added to the inventory listing and becomes an identifying control number for the asset. This control number is used whenever the asset is relocated or discarded. Some grant purchases, which require the assets be offered for return to the agency issuing the grant, are given a separate type of inventory tag in order to easily identify these grant purchases and ensure they are not disposed of improperly.
Scheduling the Physical Inventory
The physical inventory is performed each spring. It is timed to be completed with the fiscal year-end closeout. The inventory coordinator will initiate the inventory process, notifying all area monitors of timelines to complete their area inventory update and will provide them with their area’s most current inventory listing.
The college’s general inventory database is primarily maintained with coordination between the inventory coordinator and inventory monitors throughout the college. Due to the specialty of equipment in certain areas of the college, the science labs, electronic labs, audiovisual services, information technology, TV studio, and theatre each maintain individual equipment inventories.
Reconciliation of Inventory to the General Ledger
It is the responsibility of the inventory coordinator to coordinate the update of the annual inventory with the inventory monitors and to reconcile the inventory findings to the general ledger. This reconciliation is completed as part of the year-end closeout process and is included on the year-end financial statements.
Excess Inventory Furniture and Equipment
Any area of the college that wants a piece of inventoried furniture or equipment moved to storage or to another area of the college must contact plant operations by placing a work order to remove the item. It is the responsibility of the inventory monitor to complete a “Relocation or Theft of an Asset” form that documents the movement of the asset. This form is then attached electronically to the work order. Once the work order has been executed, it is the responsibility of plant operations to forward the “Relocation or Theft of an Asset” form to the inventory coordinator and the inventory coordinator will then update the database Plant operations maintains information on excess inventory items. All areas of the college are encouraged to check with plant operations for excess furniture prior to purchasing new furniture or equipment.
Loss, Theft, or Damage of Inventoried Furniture and Equipment
Inventoried items that are lost or damaged are to be reported to the inventory coordinator immediately. The theft of an inventoried item is to be reported by the inventory monitor by sending a “Relocation or Theft of Asset” form to the public safety office and the inventory coordinator. The inventory coordinator will forward the form to the appropriate personnel for insurance purposes.
Disposal of Inventoried Furniture and Equipment
Every effort should be made to find a use for the excess inventory items before permanent disposal. Disposals will be made on a case-by-case basis according to procedure 70.02.02.
Policy Manual Review/Revision: 05/13/11