Furniture and Equipment Inventory and Control Procedure - 70.02.03
College Policy Number/Title:
In order to properly identify, classify, and record the assets of Howard Community College, a physical inventory of all college-owned and purchased furniture and equipment is performed on an annual basis for capital inventory and every two years for non-capital inventory. Capital inventory generally includes items that cost over $5,000 at the time of purchase.
While the college allows employees to personalize their offices and spaces, personal furniture and equipment is prohibited due to fire code compliance, safety, and liability issues. For more information, contact the interior designer and capital projects coordinator in the facilities department. 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. Monitors may not physically move any pieces of furniture or equipment due to liability concerns. All movement of items must be performed by the facilities department, unless an area has received specific exemption from this process. The movement of capital items must also be communicated to the accounting manager in the finance office to ensure the accurate tracking of all college assets.
The inventory monitors are also responsible for notifying facilities and the finance office via a work order when an inventoried piece of furniture or equipment is to be moved out of their area, either for disposal (see procedure 70.02.02, Sale or Disposal of College Assets) or transfer to another inventory monitor’s area. In addition, they are responsible for notifying the accounting manager in the finance office, who is responsible for inventory, should an inventoried item be lost or damaged. The inventory monitors should use the reallocation or disposal of an asset form, found on the college portal. As appropriate, asset tags are attached to capital inventoried items to assist in tracking.
The physical inventory is performed every year in the spring, to allow for completion with the fiscal year-end closeout. The finance office initiates and coordinates the inventory process, including notifying all area monitors of timelines to complete their area inventory update and providing them with their area’s most current inventory listing.
Reconciliation of Inventory to the General Ledger
After the completion of the annual inventory, the inventory findings are reconciled to the general ledger to ensure the proper accounting of all college assets. This reconciliation is completed as part of the year-end closeout process and is included on the year-end financial statements.
Loss, Theft, or Damage of Inventoried Furniture and Equipment
Inventoried items that are lost or damaged are to be reported to the accounting manager in the finance office immediately. The theft of an inventoried item is to be reported by the accounting manager by sending a relocation or theft of asset form to the public safety office. The accounting manager 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, Sale or Disposal of College Assets.