Property Custodian Meeting

1. Property Custodian Meeting July 10, 2012

2. Review of USM Internal Auditor Findings • Excerpt from the USM Internal Auditors report dated May 31, 2012: “In our opinion, except for the areas noted for improvement in this report, University Baltimore has established and executed adequate controls over reporting and maintaining equipment inventory.”

3. Review of USM Internal Auditor Findings • Capital and sensitive equipment inventory was not properly tracked and accounted for. • UB Property Control Reports show that all assets with a unit value greater than $5,000 (capital assets) have been accounted for. • UB Property Control Reports show that we are missing a large number of items with a unit value less than $5,000.

4. Review of USM Internal Auditor Findings • Recommendations:UB should provide inventory training to the Property Control Specialist so that capitalization rules are clearly understood. • The custodians should be instructed to ensure that invoices, based on their knowledge, clearly define which pieces are integral to the unit so that the Property Control Specialist can properly valuate and classify assets.

5. Review of USM Internal Auditor Findings Recommendations:The following practices should be implemented: 1) UB should prepare formal physical inventory count procedures; 2) UB should hold formal trainings for all property custodians so that they know their responsibilities for the equipment inventory; 3) Custodians should maintain a listing of all equipment that they are responsible for;

6. Review of USM Internal Auditor Findings 4) The custodians should be made aware that a physical inventory count will be taking place and they should accompany the Property Control Specialist during the counts; and 5) The Property Control Specialist should provide a timely notification to the custodians of the items which have not been accounted for. • For items deemed to be missing, stolen, or lost, the Department should include the items on the Property Disposition Form in a timely manner.

7. Review of USM Internal Auditor Findings • UB is not disposing of assets in a timely manner and is not properly followings its equipment policy’s disposal guidelines. • UB should ensure that the Property Disposition Form is completely filled out by the Property Control Specialist and signed-off prior to submitting it to the Director of Procurement and Materials Management for approval. Items should only be disposed of physically and within the system after the approved form is received.

8. Physical Inventory Schedule • Schedule – see separate handout.

9. Physical Inventory ProcessSection II .06 - PHYSICAL INVENTORY COUNT PROCEDURES The Inventory Count process will begin by updating the building list and floor plans. Lisa Edwards will: 1. Update the list of buildings and floor plans. Floor plans should be verified with Facilities Management. 2. Ensure all tagged items have been updated in the Bar-Scan system (physical tags are pre-printed). Ensure that the highest numbered tag has been entered and data updated. Ensure that the next highest tag number is still in the unassigned supply (visual verification of unassigned tags). 3. Run a full inventory report and save to an Excel file. The Excel file will serve as the Control if there is a question of corruption to the inventory database. This run is in addition to and separate from quarterly or ad hoc reports. 4. Prepare a schedule for the visit to each floor of each building (or just building name for smaller buildings) for taking the count.

10. Physical Inventory ProcessSection II .06 - PHYSICAL INVENTORY COUNT PROCEDURES • Lisa will: 5. Run full inventory report, sorted by Unit Property Custodian. 6. Distribute list of items (hard copy or digital) to Unit Property Custodians along with the schedule for physical inventory count. Instruct Unit Property Custodians to confirm that they will be able to accompany the UB Property Control Specialist on the scheduled day. Print a master copy (or upload a digital copy) of the entire database for reference. 7. Provide training to new Unit Property Custodians. 8. Ensure the inventory bar-code scanner is operating correctly by scanning several items in the UB Property Control Specialist’s office, and uploading the count data (location and date last seen) to the Bar-Scan system. Verify that the data uploaded correctly and updated the data in the database.

11. 9. Following the schedule, proceed from room to room in each building, in an orderly fashion, scanning each item’s bar code. Verify with the Unit Property Custodians (who is checking their list of items, provided to them in step 6.) that each item in each room has been scanned. Note any discrepancies for resolution later. 10. Proceed from room to room, building by building according to the schedule. At the end of the day, review the schedule and revise as necessary. Inform the Director of Procurement and Unit Property Custodians of all changes to the schedule. 11. After each building has been completed, review the inventory list with the Unit Property Custodian(s). Instruct each Unit Property Custodian to make their best effort to locate any items not located in the initial count. Schedule a follow up meeting with any Unit Property Custodian whose entire list of items was not located. 12. At the end of each day, upload the data from the scanner to the Bar-Scan database. Verify that data was successfully uploaded.

12. 13. After the initial count has been completed, produce an updated complete inventory listing sorted by Unit Property Custodian. Create a follow up schedule to begin the search for items not found in the initial count. Distribute the list of items (hard copy or digital) to Unit Property Custodians along with the schedule for follow-up inventory counts. Instruct Unit Property Custodians to confirm that they will be able to accompany the UB Property Control Specialist on the scheduled day. Print a master copy (or upload a digital copy) of the entire database for reference. 14. For mobile items like laptop computers, iPads, tractors, or items assigned to off-campus locations, arrange for the end user to bring the item to campus if possible. If it is not possible for the end user to bring the item to campus, the end user should take a digital photo of the item, and of the bar-code sticker and the serial number of the item and send the digital photo to the UB Property Specialist and the Unit Property Custodian.

13. Physical Inventory ProcessSection II .06 - PHYSICAL INVENTORY COUNT PROCEDURES 15. Repeat steps 9, 10, 11 and 12 until either all property has been found, or it appears that additional physical walk-through will not result in the location of the missing items. • At that point, an updated list of items should be sent to the Unit Property Custodian, who will review the list with their Dean, VP, Director or Department Head. If the Dean, VP, Director or Department Head agrees that the items cannot be located, they will sign the updated list and send it to the UB Property Specialist. • The UB Property Specialist will write up disposal forms for items under $5,000, and will compile a single list of missing items over $5,000. The UB Property Specialist will review the lists, disposal forms and consolidated list of missing assets with the Director of Procurement. • The list of all missing items with a unit value greater than $5,000 will be referred to UB Police for investigation. The Director of Procurement will either sign the disposal form, authorizing removal of the item from the inventory, or will refer items with a unit value less than $5,000 to UB Police for further investigation.

14. Physical Inventory ProcessSection II .06 - PHYSICAL INVENTORY COUNT PROCEDURES 16. Items authorized for disposal will be updated in the inventory list. Items referred to Campus Police for review will remain on the list until UB Police have concluded their investigation. For any unrecovered item and Police Report will be filed and the item will be updated on the Inventory database as no longer active. 17. At the conclusion of the process, the UB Property Specialist will produce another report of the complete inventory list in Excel.

15. Property Custodian Responsibilities • Attend the training. • Review the list of items assigned to your area. The list includes items that have been located, and items that have not been located. • Review the Inventory Schedule. • Accompany Lisa Edwards, UB Property Control Specialist, when she does the physical inventory counts.

16. Property Custodian Responsibilities • Help the Property Control Specialist get the necessary information for mobile items like lap-top computers and iPads, etc. • Keep Lisa informed of any items assigned to faculty or staff for use at their home or away from campus. • Inform Lisa before a tagged item is returned, or returned for repair • Assist in the location of missing items.

17. Dean, VP, Director or Department Head Responsibilities • Review the list of located and missing items. • The Unit Property Custodian will review the list with their Dean, VP, Director or Department Head. If they agree that every effort has been made to locate the missing items, and the items cannot be located, they will sign the list of missing items and send it to the UB Property Specialist.

18. Dean, VP, Director or Department Head Responsibilities • The list of all missing items with a unit value greater than $5,000 will be referred to UB Police for investigation. The Director of Procurement will either sign the disposal form, authorizing removal of the item from the inventory, or will refer items with a unit value less than $5,000 to UB Police for further investigation.

19. Review of Bar Scan Reports • What is Bar|Scan? – Bar|Scan is the name of the stand-alone system we use to record and read inventory records via a bar code scanner. • What is an asset number? The asset number, sometimes called the “SP0” number, is the key identifier for each asset. It is the number printed on the bar-code label. • What is last date seen? The date on which the items was scanned. If the “last date seen” is before the most current inventory date, the item is missing.

20. Review of Bar Scan Reports • How do I know if an item is missing? Check the Last Date Seen. If the “last date seen” is before the most current inventory date, the item is missing.

21. Questions and Answers • Questions???