10-0-2 Equipment Inventory Management

BASED ON POLICY NUMBER AND TITLE: 2-13-0 EP5: ASSET PROTECTION

PURPOSE:  To define and explain Trident Technical College's Equipment Inventory Process.

DEFINITIONS AND REQUIREMENTS

Equipment - For the purpose of inventory management, an item is defined as equipment if it meets all of the following criteria:

1. It retains its original shape and appearance in use.
2. It is non-expendable. This means that if the asset is damaged, or some of its parts are lost or worn out, it is usually more economical to repair it than to replace it with an entirely new unit.
3. It represents a large enough investment of money to make it economically profitable to account for and inventory.
4. It does not lose its identity through incorporation into a different or more complex unit or configuration.

Examples of such equipment include network switches, servers, office desks, and milling machines.

Capitalized Equipment - Equipment with a value of $5,000 or more is considered capital equipment. Capitalized equipment shall be marked with an inventory identification tag, either as an individual piece of equipment or on a lot assignment basis, and shall be accounted for by tag number, description, location, and cost.  It shall also be accounted for and depreciated in the college’s financial statements according to current accounting requirements.  All of the capital equipment (100%) will be physically inventoried annually prior to the end of the fiscal year. 

Non-Capitalized Equipment - Equipment with a value of less than $5,000.00 and more than $2,500 is considered non-capitalized equipment.  Non-capitalized equipment shall be marked with an inventory identification tag, either as an individual piece of equipment or on a lot assignment basis, and shall be accounted for by tag number, description, location, and cost.  A random sample of 10% of the non-capitalized equipment will be physically inventoried annually prior to the end of the fiscal year. 

Expendable Equipment – Equipment valued less than $2,500 is considered expendable. Expendable equipment will only be marked with an inventory identification tag or tag when the college is required by federal or state grant requirements to track assets or the Cabinet member overseeing the asset determines it is in the best interest of the college to track the item.  Expendable equipment that is marked with an inventory identification tag will be included in the random sample inventory of non-capitalized equipment. 

 RESPONSIBILITIES

General Responsibilities

1. Institutional users are responsible for the control, proper use, maintenance, and security of institutional property and equipment.  Fiduciary responsibility initially rests with the Cabinet members.  Cabinet members may delegate this responsibility in writing to directors, deans and department heads.  Directors, deans, and department heads may further delegate this responsibility in writing to inventory custodians responsible for specific areas or items.  Cabinet members will forward a current list of the designated inventory custodians to the College's Inventory Coordinator in July of each year and will notify the Inventory Coordinator when there are changes to the list.
   
   
2. Each inventory custodian, individual user, and unit supervisor is responsible for and has an obligation to protect institutional equipment.  Loss or theft of equipment due to neglect or poor control procedures within departments, general areas, or individual offices may require reimbursement to the College.  The circumstances surrounding the loss and an evaluation of the investigation report will determine potential liability.  The responsible Cabinet member will make the final determination of liability in such instances.
   
   
3. Cabinet members will notify the Inventory Coordinator of any interim inventories that may be required before an inventory custodian moves to another position or leaves the College, allowing sufficient time to schedule and conduct the inventory.

Receiving Department

1. Receive all incoming equipment shipments, except for vendor on-site installations, at the College's central receiving area.  When equipment arrives, receive and accept all equipment. Post items received in the College's integrated computer software system.  Notify the Inventory Coordinator to affix inventory tags before equipment is delivered to the requesting departments.
   
   
2. Notify the Inventory Coordinator when inventoried items are being re-located within the college, replaced, or returned to vendors. Document transfers using a Report of Survey form or similar document.  Ensure the release and acceptance is   signed for by the appropriate inventory custodians before items are moved and changed in the inventory system.
   
   
3. Contact the departmental inventory coordinator to arrange pickup of property when the department's inventory coordinator has completed the process to request turn in of excess, obsolete, or inoperable equipment or property.

Inventory Coordinator in Facilities Management

1. Assign and affix state inventory identification tags to capital, non-capital, and pilferable equipment as classified by federal, state, and SBTCE requirements. If a tag cannot be attached, write the tag number on the equipment with a permanent marker or appropriate tool.  Note in the permanent equipment file why the tag could not be applied to the equipment.
   
   
2. Maintain the centralized computerized inventory system for all college equipment including the preparation of necessary paperwork.
   
   
3. With the assistance of the departmental inventory custodian, adjust the value of existing tagged equipment when new equipment is incorporated into the existing equipment. By doing this, the new capital equipment will not need a new inventory tag assigned to it.  If capital equipment is removed from the existing equipment, then lower the value.  An example of this is a large memory module added to or removed from an IT data storage unit. 
   
   
4. Update the College's inventory system when notified by Receiving that equipment is relocated within the institution, but only after the departmental inventory custodian has completed the appropriate form and obtained all the necessary signatures. Maintain a copy of the completed form for five years.
   
   
5. Prepare Reports of Survey (ROS) for equipment lost, stolen, damaged, cannibalized, or destroyed when notified by the Public Safety Department or departmental inventory custodians.
   
   
6. Prepare Reports of Survey (ROS) for equipment replaced by or returned to a vendor. Update the college’s asset and inventory management system with the serial number, model number, and/or useful life information when the College replaces equipment.
   
   
7. Conduct random inventory spot checks to verify accuracy.
   
   
8. Distribute annual inventory list to Cabinet members, deans, directors, and inventory custodians.  Furnish equipment record information to inventory custodians when requested.
   
   
9. Prior to the end of the fiscal year, conduct inventories of capitalized and non-capitalized equipment as required in the Definitions and Requirements section above.  Document the location of all equipment.  Keep the results of each review in the asset and inventory files. After taking inventory, sends a list of "not found" equipment to inventory custodians for review.  Then report the inventory status and send copies of the "not found" lists to Cabinet members, the President, and the Senior Vice President for Business Affairs.
   
   
10. Record equipment transfers within the college and to other agencies.
    
    
11. Conduct interim inventories as required before an inventory custodian moves to another position or leaves the college.
    
    
12. Conduct spot inventories as may be necessary for federal, state, or other agency audits.
    
    
13. Conduct investigations regarding the College’s inventory as deemed appropriate by the President or the Senior Vice President for Business Affairs.
    
    
14. Send an annual reminder in July to Cabinet members, deans, and department heads to update their list of inventory custodians.

Departmental Inventory Custodians

1. Develop reasonable departmental procedures to protect and safeguard institutional equipment.
   
   
2. Immediately report missing items to the Public Safety Department, appropriate dean or director, Cabinet member, and the Inventory Coordinator.  Include a complete description of the items and the circumstances surrounding their disappearance. 
   
   
3. When it is necessary to relocate equipment within the College, replace items, or return items to vendors, notify the Receiving Department through established process.  Include the description, inventory identification number (if applicable), current location, new location, and new department.  Include approval from both the transferring and receiving inventory custodians or appropriate Cabinet members.
   
   
4. Notify the Inventory Coordinator when incorporating a new item into an existing tagged piece of equipment, such as when adding memory to an IT device. A new inventory tag is not required.  The departmental inventory custodian should let the Inventory Coordinator know the existing state property tag number and the value of the item added to the equipment so that the value in the inventory can be adjusted.  This should also be done when a component is removed from a piece of equipment.
   
   
5. Obtain Cabinet member approval and notify the Inventory Coordinator prior to cannibalizing any equipment. 
   
   
6. Turn in to Receiving all equipment that is excess, obsolete, or inoperable so that it may be declared surplus and disposed of properly.  Secure approval of the appropriate Cabinet member or designated dean or director for such transfers. Email the surplus form found in the portal to the supervisor of the Receiving Department.  Include a complete list of items to be transferred, with serial numbers if applicable, the inventory numbers, if applicable and condition of each item (operable or inoperable).  Retain a copy of transfer documents.  The Receiving Department will arrange pickup of the property.
   
   
7. Do not use college equipment for non-college purposes.  Removal of equipment from campus requires written approval from the Cabinet member. Send a copy to the Public Safety Department and the Inventory Coordinator.
   
   
8. Assist the Inventory Coordinator in finding equipment that is not found during the annual inventory process.

Public Safety Department

1. Conduct investigations regarding the College’s inventory as deemed appropriate by the President or the Senior Vice President for Business Affairs.
   
   
2. Generate a police report to document equipment not recovered during an investigation.

 

Updated: 11-30-2007

Updated: 04-10-2019

Updated: 08-26-2020