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Inventory (Fixed Asset Accounting and Control system, (FACCS) Fixed Assets. Those items of a tangible nature which are not expendable and which can be depreciated in valve over a pre-determined length of time at a pre-determined percent. Fixed assets include: buildings, furniture and equipment (office), improvements other than buildings, land, machinery and equipment, computer (hardware) and vehicles. Annual Physical Inventory: A physical inventory of all equipment, buildings and land (including equipment temporarily located off campus) will be made annually. Instructions and other necessary materials for the Annual Inventory will be produced each year and sent to all department directors and activity heads. This inventory shall be completed by the appropriate time and date and signed off on by the respective department head or department chairman. LFACCS: Longwood Fixed Asset Accounting and Control System. A system to account for Longwood University fixed assets with a value of at least $2,000 (computers, monitors, printers, scanners and technology items with a high risk -$500) and a useful life of one year or more. The basic control and identification of all equipment items is accomplished through a sequential numbered decal attached to the equipment item. Additions: The Property Section of the Materiel Management office is responsible for affixing a decal as soon as possible after the item is received. The departments will contact The LFAACS coordinator clerk with the correct building and room number where the item is located Deletions From Inventory: Equipment can be deleted from the inventory only by the following the methods: Transfer within the same Agency, Transfers and Sales to Another State Agency, Sales to Political Subdivision and school Divisions, Public sales or Auctions, Trade-Ins, and Donations /or Destruction or Abandonment. It is not acceptable to cross out an item from the annual physical inventory confirmation listing. The director or head of that department, only allows "Cannibalizing" or combining the usable parts of two items to make one workable unit, upon authorization form Materiel's Management Office. Transfers:
Transfers between departments will be accomplished by means of an
Interdepartmental Property Movement or Transfer form. The Property Section of
the Materiel Management office is responsible for providing a new decal to the
department that has received the transferred equipment. The decal will be
provided after the Transfer form is completed and all the required information
is submitted such as: building and room number where the item has been
relocated, and both signatures from the transferring department and the
receiving department have been obtained. Lost,
Stolen, or Destroyed: Items stolen or destroyed must be reported immediately to
the Security Office. The Security Office will forward a designated copy of the
report to the department and the department will forward a copy to the Property
Control Clerk. Lost and destroyed items must be reported on the Property
Movement Form stating that the item(s) are lost or destroyed. This form will be
signed off on by the department head or department chairman. Trade-ins. When a trade-in is desired, the department initiates an Property Movement form noting the decal number, general description, account number, and the words "trade-in". The record along with the Purchase order is sent to Materiel Management office. At the Director of Materiel Management's discretion, based on knowledge of the University needs, an item may be traded. Inventory Control / Annual Inventory 1) The University's inventory is maintained by it's own system (LFACCS) Longwood Fixed Asset Accounting and Control System (LFAACS). All items with a value of $2,000 or more, and a useful life expectancy of minimum of two years are recorded on the LFAACS system. Technology items with a value greater than $500 are also recorded on the LFACCS system. (computers, monitors, printers, scanners and technology items with a high risk).
(3) Each department is given two weeks to verify all active Fixed Asset inventory in their possession and return the original inventory packet to Fixed Asset coordinator in the office of Fixed Asset/Surplus Inventory Control. (4) If any departments find and inconsistencies in their inventory packet, they are instructed to provide the necessary Surplus or Transfer forms that prove the asset’s movement. (5) After the forms are provided, the asset is then removed from LFAACS which, subsequently is removed from their inventory in the database and placed in the correct location; i.e. surplus, another department, surplus transacted out, etc. (6) If the department fails to return the inventory within the allotted two weeks, a letter is sent from the office of Fixed Asset/Surplus Inventory Control informing them that the packet must be returned. They are then given five working days to respond. If there is no response, a letter is sent to the department head informing them of the problem and requesting a resolution. (7) The department having items of equipment missing during the annual inventory will be given a period of 30 days to locate the items in question. (8) If the items in question are still missing after the 30- day period, the office of Fixed Asset/Surplus Inventory Control will submit to the appropriate dean or director and a copy to the Vice President for Administration and Finance. The dean or director will be requested to respond within 30 days. (9) If items are still missing after 30 days, Director of Materiel Management will consult with the Vice President for Administration and Finance to determine appropriate steps to be taken based on the individual circumstances, including the dollar value of assets with unresolved discrepancies lost from a department's inventory, may be deducted from the overall allocation of funds to the vice-presidential unit ( based on the salvage value or remaining depreciation value which ever is greater), conducting an on-site audit, or awarding additional time to locate items. University disciplinary will be taken when appropriate. Cases of poor inventory control will be reported to the appropriate Vice-President and at his/her discretion to the President of the University. (10) Equipment that is not located at the end of one year, and is still on the missing status report , will be removed from the asset computer files at the end of the second fiscal year. (11) If there is such a case where there is no paperwork to vouch for the removal of an asset, then correspondence will be sent out to all departments in search of that asset. Moreover, the head of the department in question will be notified of the missing asset/paperwork. The research process is given a time frame of two weeks for resolution. (12) When the result of the missing asset is determined (whether the item is lost, stolen, transferred, or broken) the LFAACS is updated and the necessary actions are taken. For instance, if the item has been stolen, a police report will be filed or if the item has been damaged beyond use, a report is filed and the item is listed as destroyed, etc (13) After all of the inventories are collected and the results are recorded, a reasonable sample that follows the Statistical Sampling plan, spelled out in the CAPP manual, is collected from the results and the Fixed Asset coordinator conducts a physical inventory by visiting each department and personally locating each item in the sample. (14) Every item that has been transacted out of the LFAACS system, for whatever reason, stays on record for two years before it is purged from the system. Documenting the movement of assets throughout the year is essential to completing a successful physical inventory at year end. Keeping a strict policy regarding the completion and filing of asset documentation should help to resolve the issue of missing Fixed Asset Inventory.
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