General Information

Policy No: 
7.1
Type of Policy: 
Administrative
Last Revised: 
September 2016
Review Date: 
September 2019
Policy Owner: 
Property Control
Contact Name: 
Tom Provancher
Contact Title: 
Dir. of Insurance, Claims & Property Control
Contact Email: 
tom.provancher@business.gatech.edu
Reason for Policy: 

This procedure provides general information regarding the function and responsibilities for asset management of the Institute. Management of assets is administered by the Property Control Department of the Procurement & Business Services unit.

Policy Statement: 

The State of Georgia General Statutes requires the Institute to be accountable for all equipment under its control. The Institute must also comply with the provisions of the Approval of Management, Budget Circulars A-21, Revised, SAS 112 (Federal Audit Guidelines) and A-110 to assure proper reimbursement of federally funded research and training projects.
The maintenance of a perpetual inventory of equipment is necessary to achieve correct financial reporting for the institution, to provide the basis for suitable insurance coverage, and to assist departments in accountability for their equipment.

Procedures: 

Threshold Requirements
In accordance with state & Board of Regents guidelines, the current threshold for which an inventory of an asset is maintained is $3000 with a life expectancy of one or more years. Items which do not meet the current threshold may be maintained on the inventory if, in the judgment of those responsible, is essential to meet contractual requirements, or to effect proper management of small and/or unique groups of movable personal property. The following items, are required to be inventory controlled without regard to the $3000 minimum cost:

  1. Books and periodicals (Total dollar value is capitalized each year)
  2. Firearms
  3. Vehicles

Property Control Department responsibilities:

  1. To be accountable for all equipment under its control as mandated by state and federal regulations. Property Coordinators must complete the “Asset Management For Property Coordinators” training provided by the Property Control Department.
  2. To provide internal control of capital assets, including proof of existence, ownership, location and proper valuation.
  3. To provide uniform procedures for furnishing information needed for effective analysis and control of capital expenditures.
  4. To provide a database of inventory information to meet equipment management/reporting needs of the Institute.

Unit Head Responsibilities
Colleges/departments have an important role in the maintenance of an accurate, up-to-date inventory system. The custodianship of property purchased by or assigned to a unit is the responsibility of the unit head. The responsibility includes ensuring that the physical security is maintained over all property; tagging items valued at $3000 or more; preparing property reports as required; and documenting and reporting all acquisitions, disposals and changes in the status of unit equipment. Fulfillment of these responsibilities on behalf of the unit head may be delegated, but the ultimate responsibility remains with the unit head. Adherence to the following guidelines helps to ensure that departmental inventory records are as accurate and complete as possible.

  1. Correct coding of purchase requisitions and purchase orders. Most of the data recorded in the perpetual inventory is taken directly from check vouchers, which have been coded with an equipment account code. Correct coding by departments/units during purchase requisition avoids unnecessary and time consuming corrections after receipt of the equipment.
  2. Proper coding of capital asset expenditures. Equipment purchases must be coded with a 714400, 743XXX, 744XXX, 841XXX, 843XXX expenditure account code. Use of an account code other than these increases the possibility that the asset will be omitted from the inventory records.

Benefits of Inventory Systems
The perpetual inventory system provides University colleges/departments with the following key benefits:

  1. Equipment control and accountability through a comprehensive campus-wide inventory system.
  2. Improved equipment utilization through control and identification of capital assets.
  3. Database to meet University, state and federal grant, and audit requirements.
  4. Database to meet requirements of proper risk management and provide basis for identifying equipment for the State's self-insurance program.
  5. Basis for management to project and budget future capital replacement requirements.

Procedures
The vast majority of capital asset acquisitions are generated by purchase requisition. Colleges/departments authorize equipment purchases by initiating purchase requisitions through the Purchasing Department.
When the equipment is received, the Unit's Equipment/Property Coordinator enters into the web page the pertinent physical asset information including the “Tag Number”.
The asset accounting records are selected from the General Ledger based on the account number and interfaces to the Asset Management staging table. In this table, the Property Control Department reviews the posting records and deletes any record that is not an asset transaction. The Property Control Department makes any corrections/changes/adjustment to an asset record to accurately reflect the description, cost and other pertinent accounting information. Assets, including Federal Surplus items, are recorded at actual cost.
The Property Control Department matches the tag information entered on-line by the self-tagging department to the interface record to complete the asset information. The web data is easily loaded into Asset Management System thus reducing redundant data entry. A report of untagged items is extracted. If a matching record is not found, the Property Control Department will notify the Unit via e-mail. The Unit will have 5-days to enter the asset information into the Asset Management System. The cycle is repeated again to match newly entered information.
The Property Control Department is responsible for record retention and ensuring that all taggable assets are identified through internal controls.

Policy History: 
Revision DateAuthorDescription
08-2013Property ControlUpdate to policy
Map of Georgia Tech

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