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Inventory - Fixed Asset Accounting and
Control System (FAACS)
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.
FAACS: Fixed Asset Accounting and Control System is 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 FAACS Coordinator in the Materiel Management Office is responsible for
affixing a decal as soon as possible after the item is received. The departments
must contact The FAACS Coordinator 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 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, Donations, Destruction or
Abandonment. It is not acceptable to cross out an item from the annual physical
inventory confirmation listing. The head or chair of that department, only
allows "cannibalizing" or combining the usable parts of two items to
make one workable unit, upon authorization from the Materiel Management Office.
Transfers:
Transfers between departments will be accomplished by means of a
Record of Interdepartmental
Property Movement or Transfer form. The FAACS Coordinator in
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 lost, stolen or destroyed must be reported immediately to
Campus Police. Campus Police will forward a designated copy of the
report to the department and the department will forward a copy to the FAACS
Coordinator. Lost, stolen and destroyed items must be reported on the
Surplus Property Report or Trade-In
form stating that the item(s) are lost, stolen or destroyed. This form will be
signed by the head or chair of the department.
Trade-ins: When a trade-in is desired, the
department initiates a Surplus
Property Report or Trade-In form noting the decal number,
general description, account number, and the words "trade-in". The
record along with the Purchase order is sent to the Materiel Management office. At
the Director of Materiel Management's discretion, based on knowledge of the University
needs, an item may be traded.
Verification: All forms submitted by departments shall be signed by the
head or chair of the department and returned to the FAACS Coordinator. This includes the following forms:
· Surplus Property Report or Trade-In form for property to be
surplused by the department.
· Record of Interdepartmental Property Movement or Transfer
form. This form shall be signed
by the head or chair of the
department that is transferring the property
and the head or
chair of the department receiving the
property before submitting
to the FAACS Coordinator. It is the
responsibility of the
transferring department to obtain both signatures. If the
form is
not returned with both signatures, the property will remain on the
inventory of the department transferring the property.
· Surplus Property Report or Trade-In form denoting lost, stolen
or destroyed items.
· Record of Interdepartmental Property Movement or Transfer
forms noting trade-in items. The Director of
Materiel
Management shall approve this process.
Inventory Control
/ Annual Inventory
- The University's inventory is maintained in it's own
system, the Fixed Asset Accounting and Control System (FAACS). All
items with a value of $2,000 or more, and a useful life expectancy of a minimum of
two years are recorded in the FAACS. Technology items with a value
greater than $500 are also recorded in the FAACS (computers, monitors,
printers, scanners and technology items with a high risk).
- The year-end physical inventory will be started in the last week in April
every year. The FAACS Coordinator will generate an
inventory list, or packet, from the FAACS for each department and disperse them accordingly. A letter of
instructions, to include special provisions, is included in the packet.
- Each department is given two weeks to verify all
active Fixed Asset inventory in their possession and return the original
inventory packet to the FAACS Coordinator in the Materiel Management
office.
- If a department finds any inconsistencies in
their inventory packet, they are instructed to provide the necessary Surplus or
Transfer forms that prove the asset’s movement.
- After the forms are provided, the asset is then
removed from the FAACS 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.).
- If the department fails to return the inventory
within the allotted two weeks, a letter is sent from the FAACS Coordinator 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.
- 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.
- If
the items in question are still missing after the 30-day period, the
FAACS Coordinator will send a letter to the appropriate Dean or Area Vice
President with a copy to the Vice President for Administration and Finance. The
Dean or Area Vice President will be requested to respond within 30 days.
- If items are still missing after 30 days,
the 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, that could include the dollar value of assets with unresolved
discrepancies lost from a department's inventory being 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
action will
be taken, when appropriate. Cases of poor inventory control will be
reported to the appropriate Area Vice President and at his/her discretion, to the
President of the University.
- Equipment that is not located at the end of one
year, and is still on the missing status report , will be removed from the FAACS at the end of the second fiscal year.
- 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.
- When the disposition of the missing asset is determined
(whether the item is lost, stolen, transferred, or broken) the FAACS 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.
- 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 FAACS Coordinator conducts a physical inventory by visiting each
department and personally locating each item in the sample.
- Every
item that has been transacted out of the FAACS, 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 helps to resolve the
issue of missing Fixed Asset Inventory.
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