2013 Capital Physical Inventory

1. Kick-Off 2013 Capital Physical Inventory

2. Purpose of Inventory- External • State Requirements • “Each agency must annually perform a physical inventory of its capital assets to ensure that adequate care is being used in the control and accountability of State resources” • ARS 35-131, 41-722 • Federal Requirements • Periodic physical inventory of all Government Property” • FAR 45.508

3. Purpose of Inventory- Internal • Maintain Accurate Financial Records • Depreciation (107,561,000) • University Capital Assets (1,637,048,000) • Equipment Audits • Maintain Tagged Status of Assets • Tracking System (current Tagged assets 14,326) • Disposal Reasons • Surplus • Trade-Ins

4. 2013 Inventory Timeline • February 5th - April 15th • Departments conduct Physical Capital Inventory • April 15th • Inventory sheets with Certification Statements must be submitted to Property Management by this date • April 1st- July 1st • Property Management processes changes into KFS • Changes need to be in KFS before Year end • June 1st – August 31st • Property Management conducts on site Validations of Inventory

5. What is Capital Equipment? • Any movable item that is free standing and will not lose identity when installed to other property • An Item of non-expendable, tangible and personal property • Useful life is greater than 1 year • Item has an acquisition cost of $5000 or more • Capital Tag numbers begin with an “A” • KFS (UAccess Financials) shows “active status as “A” for University Titled Equipment

6. Department Resource Folder • Inventory Distribution Letter • Contact Sheet • Department Physical Inventory Report(s) • Inventory Certification Statement • Process Procedures • FAQs • RADP form • “How to Edit Asset” Document

7. Inventory Report

8. Conducting Inventory • Start by Verify Building and Room Number • We recommend starting at bottom of building and working up • Verify A-tags in each room • If A-Tag cannot be found please look for make, model, or serial number of asset

9. Conducting Inventory • Please Verify A-Tag as well as make, model, and serial number. • Please Update any missing or incorrect information • If Asset is found but information is incorrect please put “YES” in the Found Column and write corrects

10. Conducting Inventory • If Asset is not found please mark “NO” under the found column • Please give reason to why asset is not found • Surplus, Transferred, Stolen, Cannibalized, Lost • If Asset does not have an A-Tag please mark “Needs Tag”

11. Completed Report

12. Building and Room Validations • Please make sure building and room numbers match what is active in KFS. • Real Estate Valid room numbers are marked above the door in the center of the door frame • If door numbers do not match what is in the system or do not exist please contact REA 621-3056

13. Tools for Valid Locations • Floor Plans of Campus Buildings from REA • Real Estate Administration Website • http://www.space.arizona.edu/ • Select “Service” on Main page • Select “Inventory Data and Key Plans” • Select folder for your building range • Select building you would like to see

17. Making Corrections • Departments have the ability to make changes to assets in KFS • Please complete an “Edit Asset” Document to complete changes • Document for “How to Edit Assets” is in your inventory folder • Property Management will make corrections if department has not done so

18. How to Edit Assets • Log in to UAccess Financials • Go to Main Menu

19. How to Edit Assets

20. Edit Asset Document

21. Interdepartmental Transfers • DO NOT have to go through Surplus Property Management System • Department Asset Custodians can initiate Asset Transfer Document OR • Notify Property Management and include receiving department’s account number, department number, and new location of asset along with the Tag Number.

22. Asset Transfer

23. Asset Transfer Click Here

25. https://upktraining.uits.arizona.edu/odstrack/content/financials/toc0.htmlhttps://upktraining.uits.arizona.edu/odstrack/content/financials/toc0.html

26. Asset Custodians • Asset Custodians have extra permissions in UAccess Financial for Assets • Examples Asset Transfers, cannibalization, etc • All Inventory Coordinators have Asset Custodian permissions in UAccess Financials • Contact Property Management to add someone as an Asset Custodian

27. “Not Found” Reasons • Property Management • Cannibalized, Transferred Out, Returned to Vender, Stolen, Lost, Trade-In, and Interdepartmental Transfers • Surplus Property • Surplus Property Management System • Surplus, Agency Sale, Special Bid Sales, and Trashed

28. Cannibalized • Asset broken down into parts and those parts are used to create other assets • Submit “Request for Authorization to Dispose of Property” (RADP) Form • Check “OTHER” box • Write CANNIBALIZED • Must be signed by the authorized signer for the department • Submit to Property Management • RADP Form • http://uabis.arizona.edu/eforms/Forms/iAuthorization_to_dispose_of_Property.pdf

30. Transferred Out Assets • Federally Funded Equipment • Applies to equipment purchased on account 300000-499999 • Submit a memo of approval • Memo needs signatures of Principle Investigator, Department Head, V.P of Research, and Sponsored Project Administrator

31. Returned To Vender • If equipment was returned to vender, the vender will refund your department’s account • Please note on the inventory sheet the document number of the refund

32. Stolen • Submit: “Police Report” and Property Loss Form” • Only submit to Risk Management IF Insurance Recovery Claim is desired • Property Insurance information: • http://www.risk.arizona.edu/insurance/index.shtml • Property Claim Information: • http://www.risk.arizona.edu/insurance/propertyclaims.shtml • Property Loss & Automobile Loss Forms: • http://www.fso.arizona.edu/capital-finance

34. Trade-In • Trade-In does not have to go through Surplus Management System • Include A-tag number on Purchasing document (Requisition) • Send RADP form to Property Management with Requisition number noted. • Property Management will remove Trade-In A-Tag and create a new Tag for Asset purchased

35. Lost/Unable to Determine • Equipment you are unable to physically locate AND cannot find proper documentation for can be marked as: “Lost” • Property Management will change the availability code from “A” Active and Identifiable to “L” Lost • Item will remain on department’s inventory until the asset is fully depreciated OR miss for two consecutive years

36. Lost/Unable to Determine Criteria If an individual asset or entire department inventory meets one or more of the following criteria listed below, an explanation must be submitted by department head • If a Lost asset has a Net Book Value of $10,000 or more • If a Lost asset was purchased within the last 18 months • If 10% of department’s assets list on inventory are marked Lost • If total Net Book Value of Lost assets add up to more than $50,000

37. Surplus Property Management System • Assets need to be “Turned into Surplus” for Surplus to complete • Auction Sales, Agency Sales, Special Bid Sale or Dispose • Must be registered to have access to the system • Please contact Surplus Property at 621-1754 • To register for access to SPM System • To schedule SPM System training • Assets “Turned into Surplus” will be Transferred out of your inventory and into Surplus (7801) Inventory

38. Inventory Summary • Please be as SPECIFIC as possible when noting corrections on inventory sheets • Attach BACK-UP when appropriate • Make sure that every asset has an A-Tag • Note on inventory sheets for replacement • Necessary for Assets Turned into Surplus

39. Submission of Inventory Sheets • Each department MUST SUBMIT each of the following: • Complete Inventory Sheets with corrections • Signed Inventory Certification Statement • Any Back-up and completed Forms • Deadline: Friday, April 15th, 2013

40. Appreciation Lunches Requirements • Turn in Inventory Reports by Deadline • Pass Validation • Provide Signed ICS • Give Necessary back-up on Exception Assets • Attend Kick-Off Meeting

41. Appreciation Lunches Who get Incentives? • First 5 Departments in each Category that Meet Requirements • 5 People per Department Categories 1. >201 Assets – 16 Departments 2. 101-200 Assets – 26 Departments 3. 50-100 Assets – 32 Departments 4. 16-49 Assets – 55 Departments 5. 6-15 Assets- 45 Departments 6. <5 Assets- 116 Departments

42. UA Titled and Sponsor Titled Assets • Both University and Sponsor titled assets are included in the biennial inventory • A-110 states that “a physical inventory of equipment shall be taken and the results reconciled with the equipment records at least once every two years” • FAR 52.245-1 states that “the Contractor shall periodically perform, record, and disclose physical inventory results”

43. Equipment Purchased on Sponsored Accounts • The University Property System is regularly audited to ensure compliance, control, and management of state, University, and Federally funded equipment • Biennial audit by Office of Naval Research (ONR) • Annual by the Office of the Arizona Auditor General - Financial Statement Audit • Annual A-133 audit of federal grant and contract transactions by the Office of the Arizona Auditor General • Sponsor Audit

44. Federally Titled Assets and The ONR Audit • The ONR audit is performed to determine whether or not the University Property System is compliant as required by FAR 52.245-1(f)(3) • If the UA property system is deemed unsatisfactory, the University will NOT maintain eligibility to receive government funding for the purchase of equipment • In other words, the University will lose a significant amount of Federal funding if the system is found to be unsatisfactory

45. Physical Inspection • The ONR audit involves physical inspection and verification of the accuracy and completeness of University property records • Auditors will check for the following: • Physical existence of equipment • Equipment is in use and functional • The off-campus form is complete for off campus equipment • University records match the A-tag number, serial number, model number, location and manufacturer to the asset and its location • Federal property has a ‘Property of the Federal Government’ label and UA Property does not

46. Inventory of Federally Funded Assets • While you are performing your inventory, think about the ONR audit • If a UA asset has a Property of Federal Government label, remove it • If a Federally titled item is no longer in use or broken, contact SPS Property so disposition instructions can be requested • If an asset has been delivered to the sponsor, send the shipping documents to the SPS Property Manager so it can be removed from inventory • If we can resolve potential issues now, the audit will go smoothly

47. UA Titled Assets Purchased on Sponsored Accounts • Even when title vests with the University, we still have an obligation to adhere to award property provisions, i.e. A-110, FDP, PHS Grant Policy Statement, FAR • Property is properly identified • Hierarchy for use is adhered to • Disposition is requested when needed • Sales/Surplus is appropriate • Assets meet transfer eligibility

48. Final Thoughts Information and Materials discussed at this meeting can be found on FSO Capital Finance Website: http://www.fso.arizona.edu/capital-finance Please feel free to contact any of the Property Management team members or Sponsored Property members. We are here to HELP you!!!

49. Questions?