INVENTORY
CONTROL POLICIES AND PROCEDURES
1. Equipment
Equipment
consists of all nonexpendable personal property, such as machinery, implements,
tools, furniture, vehicles and other apparatus with a unit cost of $5,000 or
more and a minimum useful life expectancy of one year. The cost of equipment
includes the purchase price, transportation costs, installation costs and other
direct costs of readying for use.
Equipment
acquired by donation, or the intent of donation such as acquisitions of one
dollar, should be recorded on the basis of an appraisal of the fair market
value at the date of acquisition.
1.1 Personal
Property
1.1.1 Furniture - Movable furniture that is not a structural component of a building. Examples include, but are not limited to desks, tables and office workstation systems. Furniture is depreciated over a useful life of twenty (20) years.
1.1.2 Office and Operational Equipment - Office and
operational equipment other than computers and peripherals. Examples include, but are not limited to,
mail processing systems and telephone systems.
Office and operational equipment are depreciated over a useful life of
ten (10) years.
1.1.3 Computers and Peripheral Equipment -
Computers and peripheral equipment are depreciated over a useful life of five
(5) years. Examples include, but are not
limited to, desktop computers, laptop/notebook computers and printers. Computer software should be expensed.
1.1.4 Educational and Scientific Equipment -
Classroom or laboratory equipment used to conduct the normal program of educational
and research activity. Examples include,
but are not limited to, electronic instruments, lab equipment, surveying
equipment and radio equipment.
Educational and scientific equipment are depreciated over a useful life
of ten (10) years.
1.1.5
Motorized Vehicles - Examples include, but are not limited to, cars,
mini-vans, vans, boats and light general-purpose trucks. Motorized vehicles are depreciated over a
useful life of five (5) years.
1.1.6 Heavy Equipment - Examples include, but are
not limited to, buses, heavy general-purpose trucks, forklifts, snowplows and
agricultural equipment. Heavy equipment
items are depreciated over a useful life of ten (10) years.
1.1.7
Athletic Equipment – Examples include, but are not limited to, portable basketball
backstops, shooting trainers and fitness systems. Athletic equipment items are depreciated over
a useful life of ten (10) years.
1.1.8
Audio Visual Equipment – Examples include, but are not limited to, desktop
projectors, plasma displays and video conferencing systems. Audio visual equipment items are depreciated
over a useful life of ten (10) years.
1.1.9
Musical Instruments – This category
consists of any musical instrument such as pianos, pipe organs and
clarinets. Musical instruments are
depreciated over a useful life of ten (10) years.
1.1.10
Physical Plant Maintenance Equipment – Examples include, but are not limited
to, mowers, floor scrubbers and power sweepers.
Physical plant maintenance equipment items are depreciated over a useful
life of ten (10) years.
1.1.11
Photographic Equipment – Examples include, but are not limited to, film
processors and cameras. Photographic
equipment items are depreciated over a useful life of ten (10) years.
1.1.12
Food Service/Kitchen Equipment – Examples include, but are not limited to,
ovens, serving carts and ice machines.
Food service/kitchen equipment items are depreciated over a useful life
of ten (10) years.
1.1.13 Library Holdings - Library holdings include library, music,
artistic and reference materials.
Examples include, but are not limited to, books, periodicals, microfilm,
microfiche, government documents, films, videocassettes, audiocassettes,
phonnorecord compact disc - audio, slide set, filmstrip, transparency, maps,
multimedia kit, three-dimensional models, non-catalogued pamphlets, computer
software manuscripts and archivals, photograph and compact disc. Library holdings are depreciated over a useful life of ten (10)
years. Library holdings will be adjusted
at year-end to reflect the current value less applicable depreciation.
1.1.14
Livestock - Livestock should be expensed.
1.2
Purchases
All equipment items must be purchased through the Purchasing Office,
regardless of cost. (
1.3
Classification of Equipment
Representatives of Purchasing, Accounts Payable and Grant Accounting
(if grants or contracts are involved) will confer with the requisitioner to
resolve any questionable classifications of purchases as supplies or equipment
in order to provide for proper coding of the expenditure.
1.4
Requisitions
Requisitions submitted for equipment purchases shall use the equipment
requisition form.
1.5
Inventories of Equipment
For each item of equipment purchased, a permanent inventory number will
be assigned by the Property Officer.
1.6
Tagging
Inventory numbers will be assigned and equipment items tagged by the
Property Officer or designee after delivery and acceptance.
1.7
Inspection
All equipment items will be visually inspected by the person accepting
the shipment upon delivery. The Property
Officer or his/her designee will be notified if there is damage to an equipment
item.
1.8
Deviations from Specifications
If the supplier deviates from the specifications and/or the quantities
stipulated on the purchase order, the deviations must be noted. For technical
or scientific equipment, the requisitioner will notify the Property Officer of
deviations if these are unacceptable and he/she intends to return the
item(s).
1.9
Damaged or Defective Equipment
The requisitioner will ultimately decide whether or not items are
acceptable. If an item is returned, the requisitioner will inform the Property
Officer via a memorandum detailing the item(s) being returned and the reason.
If the item already has a property tag affixed, a Request for Change of Accountability
Form must accompany the memorandum.
If a defective item is returned for repair or replacement at the
vendor's discretion, the requisitioner will maintain a record of the tag number
of the item being shipped. If the vendor replaces the item, the requisitioner
will, upon receiving the replacement, immediately notify the Property Officer
by memorandum or Request for Change
of Accountability Form of the tag number of the item replaced and request
tagging of the replacement.
1.10
Completion of Delivery Copy of Purchase Order
When delivery of an item is made to an administrative unit by Central
Receiving, a representative of the administrative unit receiving the material
will sign and date the "Delivery" copy of the purchase order when the
item is delivered and return the copy to the deliverer.
1.11
Special Inspections or Testing
The requisitioner must indicate on the requisition those items that
must be inspected or tested at a location other than Central Receiving before
final acceptance/rejection will be made. This request will be noted on the
purchase order by Purchasing. The
Property Officer will assign property numbers and affix them to the equipment
when he/she is notified of acceptance by the requisitioner. (See also Inventory
Control Policies and Procedures, Sections 1.7 and 1.8.)
1.12
Request for Change of Accountability
The Request for Change of Accountability Form (Exhibit
IC-1) is used by all academic and administrative officers to report any
changes of accountability or building location of equipment items. This form is
also to be used to report transfers to other administrative units, surplus,
salvage and lost or stolen equipment. This form is sent to the Property Officer
immediately after the transfer is completed; it is required in addition to
other forms necessary (e.g., IDTs, memos or police reports) for the transfer.
(Also see Inventory
Control Policies and Procedures, Section 8.)
1.13
Computer Listing of Property
A copy of the computer listing of each administrative unit's inventory
will be sent to the academic or administrative officer annually. Equipment that
has been paid for and tagged since the last listing is included on the listing.
Any variations between the University's listing of inventory and administrative
unit's inventory shall be reported immediately to the Property Officer by means
of the required Request for Change in
Accountability Form.
1.14
Coding and Depreciation of Equipment
Equipment will be coded and depreciated in
accordance with the code and useful life as defined in Exhibit
IC-2, Equipment Class Codes.
1.15
Accountability for Equipment
The academic or administrative officer is responsible for all equipment
in administrative units under his/her supervision.
1.16
Employee-Owned Items
The University will assume no responsibility for employee-owned items.
Such items must be removed when the employee ceases to be employed by the
University.
1.17
Missing Items
As required by the law of the State of
1.18
Use of State Property
1.18.1 State property can only be used for state
business. If state property is requested to be removed from campus to pursue
job-related activities at other locations, a TTU Property Loan Request Form
must be completed by the individual requesting such action and approved as
indicated by the form prior to removal of the property from campus. The approved
request form shall then be sent to the Property Officer for record
retention.
1.18.2 Newly purchased equipment must not be removed
from the campus before it has been properly identified with an inventory
tag.
1.18.3 For equipment regularly used for on-site
scientific research or experimentation, gathering of data, field measurements
or related uses, records are to be maintained by the academic or administrative
officer detailing the whereabouts of the equipment, who is in possession of the
item, what the item is being used for and the expected date that the item will
be returned to the campus.
1.18.4 Equipment properly obtained from authorized
campus dispensaries include audio-visual equipment or other educational aids
dispensed by the
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information is maintained by Business & Fiscal Affairs
Last Updated: 20-MAR-2008
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