Property, Plant & Equipment
Capital Equipment Procedures
Per University specifications, the Property Accountant capitalizes any equipment that has a value of $5,000 or over. This value can be determined from the purchase price at the time the equipment is bought or the fair market value of assets acquired through donations to the university. All costs reasonable and necessary to obtain the asset, including component parts and shipping, are included when determining the cost of the asset and its capitalization value. View the complete procedures
Annual Physical Inventory Checklist
To assist in proper control of physical inventory, each department is required to complete the following physical inventory checklist. The checklist is to be completed, certified and submitted by the chairperson of the department )or a proper designee) no later than March 1st of each calendar year.
Procedure
- Request the Physical Inventory Report from the Financial Services and sort as desired (location code, custodian, BU Tag, etc.). Print to use as a verification list.
- Take a physical inventory of equipment that is contained in all the buildings and rooms assigned to your unit and/or used by your unit faculty/staff/students.
- Use a distinctive mark on the Physical Inventory Report to indicate every item located.
- Make notes for any data that needs to be added or corrected in the spreadsheet record.
- Items that cannot be found after a diligent search should be noted as pending resolution. The information on the missing asset(s) is to be conveyed to the Financial Assistant/Property Accountant or Research and Sponsored Programs accounting staff.
- For items found that are not on your Physical Inventory Report, record all of the required information at the bottom of the report for update.
- Review your Physical Inventory Report notations for legibility, reasonableness, consistency and completeness.
- Enter the updates into the spreadsheet and submit it along with the Property Control Form (for disposals and transfers) to the Property Accountant.
- Sign and have the unit Head sign the Certification Letter and submit no later than March 1 of each calendar year to the Property Accountant.
- Follow up and resolve pending items (not located).
- Continue to search for items checking with the responsible person inquiring about disposal, trade-in, loaned to another university faculty/staff/student and record updates to your list.
- If possible obtain a written statement from anyone who has knowledge of unauthorized disposal of an item.
- After substantial search and follow-up efforts fail to locate the item, request it be written off.
- Beginning April 1st of each calendar year the Property Accountant will send a listing of all your pending items that must be resolved no later than May 1st of each calendar year.
- Anytime that you have questions about the Physical Inventory process, data entry, forms, and/or policy, you may contact Financial Services.
Download the annual physical inventory checklist and form.