Financial Services
Policies and Procedures - Financial Services
Procedure 9 - Fixed Assets Procedures
Recording and Tagging Fixed and Inventoried Assets
An interface extract program ran by Fixed Asset staff identifies potential capitalized assets that enter Banner Finance through purchasing and accounts payable, and create corresponding pending asset records. This extract program gathers cost and other asset data from purchase orders, invoice, voucher and other records. Extract processing is controlled by UNCG defined capitalization rules, based on the purchase cost and the account codes charged for the purchase. Acquisitions (such as gifts-in-kind, land, buildings) not recorded in purchasing or accounts payable may be entered into Fixed Assets on-line or in batch.
Based on the University's inventory and capitalization policies, Fixed Assets determine which items should be assigned a bar code tag number and added to the Fixed Assets System. Under no circumstances should anyone take an item off campus before the Fixed Assets staff has properly tagged it. If a department needs an item tagged immediately, they should contact the Fixed Assets staff at 334-5938.
The Fixed Assets staff works with the department to identify the correct asset for tagging by comparing the description, serial number, model number, manufacturer, etc. from the invoice to the asset. The Fixed Assets staff will place the "Property of UNCG" bar code tag on the front or other area of the item to facilitate scanning with the hand held scanning unit. Only Fixed Assets personnel, and not departmental personnel, have the authority to tag (i.e., place bar code labels on equipment).
Once the item has been properly tagged, and additional information such as building and room numbers, comments, etc. have been entered on the Banner Fixed Assets System, the Fixed Asset Supervisor/Accountant reviews each pending asset for accuracy and completeness and "officially approves" the addition. Prior to approval no data can be fed to Accounting; the asset does not yet exist from an Accounting standpoint. When an approval transaction is processed in Fixed Assets, data needed to recognize the acquisition in the general ledger (i.e., the debit and credit accounts to be posted and the asset cost) are stored for processing by the Accounting Feed program.
The relationship between Fixed Assets and the Financial Accounting component of Banner Finance is one of detail to control: summary asset values are recorded in the General Ledger control accounts while supporting detail is maintained within Fixed Assets. Within Fixed Assets, asset records are created and transactions processed to reflect asset activity, and data are collected for Accounting. An Accounting Feed interface generates journal entry transactions, which can then be applied to update the general ledger.
PHYSICAL INVENTORY OF FIXED ASSETS
The Fixed Assets staff will conduct a physical inventory of capitalized items annually. The Fixed Assets staff will send inventory worksheets listing all bar coded assets to the department head, along with instructions so that the department head's designee will be prepared for the physical inventory. The designee should locate all items, update the inventory worksheet data and return it to the Fixed Assets Section within ten business days. Once the Fixed Assets staff has recorded these changes on the Fixed Assets System and printed an updated physical inventory worksheet, they will arrange with the designee a date and time for the physical inventory. The designee should be prepared to escort the Fixed Assets staff to each item, to make arrangements for lap top computers to be brought to the office, and to have access to locked offices, classrooms or labs.
Using the hand-held scanner, the Fixed Assets staff will scan each bar coded asset. Upon completion of the physical inventory, the Fixed Assets staff will update the Fixed Asset System as needed and send a "missing" items schedule and a final inventory printout to the department head. On a monthly basis, the Fixed Assets staff will prepare reports of missing items by division and will send the reports to the other respective appropriate Vice Chancellors and Provost. The Fixed Assets staff will record these missing items as disposed on the Fixed Assets System by June 30th if the Vice Chancellors and Provost are unable to locate them.
DISPOSAL OF FIXED ASSETS
University equipment cannot be thrown away or discarded. To dispose of an asset, the responsible department must complete Form FA-13, Equipment Disposal Form. This form must be completed whenever the custody of the fixed asset changes due to the item being surplused, returned to vendor, junked or traded.
The department fills in their department name and number, telephone number, contact person, date, tag number(s), description of item being disposed, and location of item being disposed. The department head must sign Form FA-13. If the asset is to be surplused, the department should send a copy of Form FA-13 to Warehouse Services and Surplus Property personnel at 2900 Oakland Avenue (so that they will collect and dispose of the asset) and send the original to the Fixed Assets Section at Campus Supply Store, 804 Oakland Avenue (so that it will be recorded as disposed on the Fixed Assets System).
Returned/Exchanged Assets
If the department returns to a vendor an asset which has been bar coded, the department should complete an FA-13 Equipment Disposal Form and attach a copy of the credit memo or check received from the vendor. If the department exchanges an asset that has been bar coded for a replacement asset, the department should complete an FA-13 Equipment Disposal Form and attach a copy of the documentation for the transaction so that the old asset can be properly disposed and the new asset can be bar coded.
Traded Assets
The department must obtain approval from the Purchasing Office to trade in
a fixed asset as partial payment for acquiring a new item and complete the
Form FA-13, Equipment Disposal
Form (as indicated above).
Junked Assets
When the department determines that an asset is considered to have no useful value to any department at the University, it may be retained by the department for parts. However, the department must submit an original Form FA-13, Equipment Disposal Form, to the Fixed Assets Section which will record the disposal on the Fixed Assets System.
Surplus Assets
When the department determines that an asset has no useful value to any department at the University, it may be surplused by the department. The asset may or may not have value to someone other than the University. The department should send an original Form FA-13 to the Fixed Assets Section, which will record the disposal on the Fixed Assets System. In addition, the department should send a copy of the form to the Warehouse Services & Surplus Property Section, which will collect and dispose of the asset. Regardless of cost, all University property must be disposed through University Warehouse personnel. Under no circumstances should anyone remove University property identification tags.
Stolen Assets
According to General Statute 114-15, if any state property has been stolen,
the employee discovering the suspected theft must report the theft to his/her
supervisor within 24 hours. The supervisor must notify the head of the department
within the next 24 hours. The department head should notify the University
Police at the University of North Carolina at Greensboro within the following
24 hours. The University Police should be notified as soon as possible,
but no later than three days from the day of discovery.
The department should send a copy of the University Police report pertaining to a theft to the Fixed Assets Section. Upon receipt of the Police report, the stolen item is removed from the Fixed Asset System.
Missing Assets
If an item cannot be located during the physical inventory, the Fixed Assets
staff will mark it as "missing" on the Fixed Assets System. After
the completion of the physical inventory, the Fixed Assets staff will print
a schedule of these "missing" items and send it to the department
head with a request that they try to locate the items during the next ten business
days. If the department subsequently locates a missing item, they should request
that the Fixed Assets staff scan the item and delete the missing notation on
the Fixed Assets System. If an item cannot be located, it will be included
in the missing asset reports that are prepared monthly for the appropriate
Vice Chancellor or Provost.
Real Property Demolition
Upon demolition of property the Vice Chancellor for Business Affairs will:
- Cause a BoT Action Item to be generated
- Determine the conditions of acquisition and whether the State Property Office needs to be notified
- Determine from the State Property Office whether subsequent action by the Council of State needs to be taken
- Determine the last value assigned to the structure
- Provide Fixed Assets with the proposed date of demolition and last known value for the structure to be demolished.
TRANSFER OF FIXED ASSETS
When a department has equipment for which it no longer has a need, but another department within the University may make use of the equipment, the department can transfer it to the other department by filling in a Form FA-14 Equipment Transfer Form. Form FA-14 is filled in by the department initiating the transfer with the appropriate tag number, description, date, telephone number for each department, department name and number for each department, and the building and room number of the new location. The department head for the current location, as well as, the department head for the new location must sign Form FA-14. The completed Form FA-14 is sent to the Fixed Assets Section. When the Fixed Assets Section receives Form FA-14, the changes are recorded on the Fixed Asset System.
When a department moves an asset from its current building or room location to a new location, it is only a location change. Form FA-14 Equipment Transfer Form can be used to notify the Fixed Assets staff to update the Fixed Assets System. The department would enter their department name as both the current location and the new location, along with the new building and/or room numbers.
FIXED ASSET ITEMS LOCATED OFF-CAMPUS
When a department head determines that it is necessary for a University employee to take University equipment off campus, the department must complete Form FA-16 Agreement for Equipment Located Off-Campus. This form must include the item tag number, description, serial number, manufacturer, equipment cost, date of removal, expected return date, the name of the employee who has custody of the equipment, telephone number for the department head and telephone number for the employee user, and the off-campus location (address). The employee taking the equipment off campus must sign the agreement which includes this note: "As a University employee user of the equipment listed on this form, I agree to return the equipment when requested and to complete a new FA-16 Form if I still have the equipment in my possession at the annual inventory date. While signed out to me, if the equipment is lost, stolen or not returned when requested by the Department or Fixed Assets, I agree to repay the equipment's fair market value." The department sends the completed Form FA-16 to the Fixed Assets Section. Under no circumstances should anyone take an asset off campus before it has been bar coded. The department can request that an asset be bar coded immediately by calling 334-5938. Removal of university equipment for off-campus use without department head approval may result in the individual being prosecuted for misappropriation of state property and/or larceny.
The employee user and the department head must sign a new Form FA-16 during
the physical inventory process each year. When one of these off-campus
items is returned to campus, the department must put the date of the return
along with the asset's building and room location on the Form FA-16 and
send it to the Fixed Assets Section so that the Fixed Asset System can
be updated accordingly.
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