Asset control is responsible for the recording and control of four broad
categories of University assets:

- Land
- Land Improvements
- Buildings
- Equipment

Such control extends from the acquisition of the asset to the disposition,
including any transfer or relocation.

A. Classification of Fixed Assets:
As an illustration of the asset categories and their associated items, the
following outline was prepared:

1. Land - Referenced to deeds and titles

2. Land - Improvements other than buildings:
a. Athletic Fields
b. Utilities
c. Fencing & Gateways
d. Flag Poles
e. Lighting Systems
f. Landscaping
g. Roads, side walks, parking lots

3. Buildings
a. Educational
b. Organized activities relating to instruction
c. Auxiliary enterprises

4. Equipment
a. Athletic and Recreational
b. Automotive
c. Office Furniture
1. Desk units with chairs
2. Conference table with chairs
3. Bookcases
4. Credenzas
d. Office Equipment
1. Calculators
2. Typewriters
3. Word processors
4. Copiers
5. Fiche readers
6. Other
e. Computer Equipment
1. Large systems
2. Terminals
3. Personal computers
4. Personal computer printers
f. Residence Hall Furnishings
1. Beds
2. Dressers
3. Desks
g. Scientific Equipment
1. Instruments
2. Microscopes
3. Incubators
4. Ovens and Furnaces
h. Building & Grounds Equipment
i. Instructional Equipment & Aids
j. Musical Instruments
k. Audio/Visual Equipment

The following are examples of items that should not be classified as equipment:


1. Chair Mats
2. Repair Parts
3. Scientific test tubes, vials, beakers, flasks, etc.
4. Draperies
5. Rugs and carpeting

Equipment is categorized into two sub-groups:

1. Capital Equipment:
An acquired value of $5,000.00 or more and an economic life span greater than
one (1) year.

2. Non-Capital Equipment:
May not meet either criteria of capital equipment but qualifies as equipment
to be controlled for purposes of insurance or general information.

All items which qualify as controllable equipment should be placed on the
university's inventory records regardless of source of receipt (purchase,
non-monetary gift, grant acquisition).  Items received as gifts should be
assigned a value based on the fair market value (cross reference procedure
101: Non-Monetary Donated Assets).  Surplus property received from Federal or
State agencies should be placed on the inventory records at the actual cost.

B. Reporting Acquisitions:
Equipment can be acquired as a result of purchase, gift, grant, surplus,
transfer or in-house fabrication.  Items acquired through Purchasing are
routinely identified by asset management through the Accounts Payable system
and do not require any additional reporting by the custodian of the equipment
for purposes of establishing the inventory records.

Equipment on lease, for which the lease is considered a capital lease, is
recorded as an asset with a corresponding lease liability at the time the
lease term commences.  Normally, items received on loan  or rental basis are
not recorded on University records unless the equipment ultimately becomes
the property of the University.  Until then, it will not be necessary to
report the acquisition.

Asset management records the acquisition of equipment as a result of a gift
or donation from the transmittal of documents prepared by the University
Affairs Division.

C. Equipment Identification:
To aid in identifying and controlling equipment, asset management will assign
a University identification number to each piece.  This number, in the form of
a decal, will be placed on the equipment by asset management personnel as it is
identified from the various document sources.

D. Departmental Inventory Lists:
The Asset Management section maintains a perpetual inventory record of
University equipment from the reports described above.  Bi-annually,
each department head will receive from Asset Management a listing of the
equipment charged to his custody.  This listing should be verified to an
actual inventory conducted by the department, and a certification of actual
inventory should be forwarded to Asset Management along with a listing of
discrepancies noted on the original equipment listing.

After completing the reconciliation, Asset Management prepares an itemized
departmental inventory list showing the total dollars amount of the gain or
loss in inventory.  This report is sent to the Executive Vice Chancellor,
University Controller, Dean, or Director, and the Department Head.

During the interval between bi-annual listing's, the Internal Auditor conducts
audits and inventories in all departments and offices throughout the University. 
Audits and inventories are generally conducted on a cycle basis but may be directed
toward high pilferage and high value items.  All discrepancies discovered will
be reported to the appropriate Dean, Director or Department Head.

E. Reporting Disposal and Transfers of Equipment:
Refer to Policy #104.10, Fixed Asset Disposition.

F. Loss or Theft of Equipment:
The Inventory Control Section is responsible for cooperating and coordinating
with the University Public Safety & Security Department with respect to ways
and means of obtaining protection against loss of University equipment.  This
does not relieve the custodian of responsibility for protecting and
safeguarding all equipment assigned to his custody.

Whenever the loss or theft of equipment is discovered, the custodian, in
addition to submitting a memo to the Asset Management Section, must immediately
report the loss to Public Safety & Security.  Public Safety & Security will
investigate the circumstances of the loss, and upon completion of the investigation,
will submit a copy of the case report to the Asset Management Section.  Inventory
Control will not delete the item from the University records or the departmental
inventory list until all investigative action has been completed and all attempts
to recover the item have failed.

(mds-9/25/97)