1. Inventory Policies and Procedures DE-437 (Required)

2. Class Objectives Establish an understanding of Inventory and Inventory’s role. Understand why a physical inventory is conducted. Recognize the importance of updating inventory statuses and locations. Understand the basic steps of performing physical inventory.

3. Why is inventory management so important? Because The University of Texas at Austin has over $1 billion worth of assets in which to maintain and report to the State of Texas.

4. Let’s keep UT out of the headlines!

5. Whose “stuff” is it anyway?

6. Inventory Contact Inventory Services Property Manager President of the University Federal Agency Federal Government Board of Regents The State of Texas

7. Inventory Services Role Maintains equipment inventory records on shared mainframe database. Locates and tags university equipment as it is purchased and received by departments. For departments that self-tag, we use their details to add assets to *DEFINE. Conducts and monitors the annual physical inventory cycle. Audit those reports submitted by the university departments.

8. Inventory Services Role Provides inventory information and reference resources to department personnel. Reports and reconciles inventory records and values to: annual financial report schedules state property accounting record reports federal agencies

9. The Department Inventory Contact’s Challenge Tracking (tagging inventory) Reporting (physical inventory certification) Relinquishing (inventory removal)

10. What gets tagged? Capitalized Assets—assets whose purchased value is equal to or greater than $5,000 Controlled Assets—assets whose cost is between $500 and $4,999.99 and fall under the special category designated by the state Tracking Inventory

11. Examples of Controlled Equipment ($500 to $4999.99) cameras & camcorders projectors stereo systems televisions & VCRs computers: desktop CPUs or portable laptops nonportable printers hand guns & rifles, regardless of cost

12. computer-related equipment scientific equipment monitors servers hard drives cards furniture Software - “Software must be 100K or more to be capitalized”. In order to be tagged and included on your inventory, this equipment must be $5,000 or more in value (it becomes capitalized). What is not controlled?

13. Tagging the Equipment Inventory field representatives They are deployed automatically based on purchasing data. To request tagging, e-mail oa.inventory@austin.utexas.edu. oa.inventory@austin.utexas.edu Departments that participate in self-tagging After tagging assets, these departments send the tagging detail to Inventory Services for processing. This information should be sent monthly. Tracking Inventory

14. All “capitalized” or designated “controlled” assets must be tagged within 30 days of receipt. “See Best Practices for self-tagging on our web page” https://www.utexas.edu/business/accounting/in/ Any asset not meeting the “controlled” or “capitalized” thresholds should have a noninventory object code and will not be tagged or added to *DEFINE. Tracking Inventory

15. Attention Please Not everything is tagged; however, everything is an asset, even if it is not in *DEFINE or if it has depreciated to a zero dollar value.

16. Reporting (Physical Inventory Certification) Why do we conduct a physical inventory? When do we perform inventory? How is physical inventory performed?

17. Why We Conduct a Physical Inventory The provisions of the 52 nd Legislature: Regular Session 1951 House Bill Number 753, Section 5 (3) Requires state organizations to take a complete physical inventory of all equipment in their possessions once each year Results reported to: State Comptroller TEX.GOV’T CODE ANN.sec. 403.271 (b)

18. When We Perform Inventory Inventory Services establishes eight inventory cycles. Cycle deadlines are based on the number of items assigned to the departments. The FY 10-11 deadline for departments with fewer than 100 items is Jan. 21, 2011. All other deadlines will occur between February and June. You may begin your cycle at any time (unless you need to schedule a scanner), the earlier the better. “Once the fiscal year is open you may request a scanner by emailing scanhelp@austin.utexas.edu” Turn in your inventory by the designated due date.

19. Verify the *DEFINE GG5 screen for accuracy. Work with your supervisor and team members to determine which unit codes you are responsible for. Be sure that the correct inventory contact is listed in GG5 for all units and subunits in your department. If your name is listed, you are responsible. Before You Begin

20. How can I update GG5? Inventory contact updates can no longer be made from the GG5 screen. To assign department contacts at the unit code level, go to List Contacts in the OHS ContactsList Contacts System. This new system will allow you to assign secondary or backup contacts. https://utdirect.utexas.edu/ohs/contacts/ To update the unit head of a unit, complete the complete the Signature Desk Request form http://www.utexas.edu/business/accounting/sign /

21. See OHS Contacts System help

22. Before You Begin Gather materials current NVP report of departmental assets building/room list for your area scanner for those departments with greater than 100 items (this has to be scheduled) If you have trouble obtaining an NVP report or a list of buildings/rooms, please contact oa.inventory@austin.utexas.edu. oa.inventory@austin.utexas.edu

23. Printing an NVP report: Step 1

24. Printing an NVP report: Step 2 Type your unit code in the Misc: field.

25. Printing an NVP report: Step 3 From this screen press SHIFT + F3.

26. Printing an NVP report: Step 4 Put an “x” beside INJGNVP1.

27. Printing an NVP report: Step 5 Tab over to Unit to report:. Type in the 1 st four-digits of the unit code… or the full unit code, then press ENTER.

28. Printing an NVP report: Step 6 Press ENTER to submit… or…Clear to cancel (PAUSE/BREAK key) Pressing ENTER will give you a screen with a job number.

29. Printing NVP report: Step 7 Pick up the NVP print out at the UT Copy Center located at the Social Work Building Room G14. It is usually ready in about an hour.

30. Understanding the NVP Report Found New fiscal year acquisitions are typically indicated as “found” when they are added to your inventory. Not Found (need to locate) Items transferred in Any prior-year asset acquisitions Items previously indicated as missing

31. Institutional Research Bldg/Room List 1.Go to the NMM menu in *DEFINE. 2.Press the SHIFT and F3 keys simultaneously. 3.Select _ INJGBLD2 BUILDING CONVERSION REPORT - OLD BUILDING CODE ORDER or _ INJGBLD3 BUILDING CONVERSION REPORT - BUILDING NUMBER ORDER 4.Pick up at the Copy Center. The same place that you pick up the NVP report.

32. Annual Physical Inventory Process Four-Step Process: The annual physical inventory process is a procedure performed annually to account for assets and equipment belonging to the university. 1. Locate 2. Scan 3. Reconcile 4. Report

33. Step 1: Locate Use the NVP report to locate assets. If you can’t find an asset, look everywhere: offices/classrooms labs closets/storage areas previous documentation/files check Request for Removal of Equipment forms ask coworkers or other departments

34. Step 2: Scan When scanning barcodes during the inventory process, all equipment within any one room should be scanned. This will provide an update of the location to the actual equipment owners if another department owns it. Scanning an item will not change ownership. It will simply create a transaction line on NV1 Screen 3 for the inventory item showing the date and logon ID of the person who scanned the item.

35. Step 2: Scan While scanning, if an item is: Found Continue scanning until you finish or have reached approximately 200 items. Arrange to bring the scanner in to upload data. Repeat this process until all scanning is done. Not found—Notate this on the NVP report to further investigate or run a new NVP after downloading to see what still needs to be found.

36. Manual Step 2: Departments with less than 100 items will complete the inventory manually. While searching, if the item is: Found—Mark it on the NVP report for manual updating in *DEFINE later. Not found—Notate on the NVP report to further investigate or run a new NVP after downloading to see what still needs to be found.

37. Additional Information: 900000 Numbers Why are there inventory numbers on my NVP report beginning with 9 that are not on my equipment? Because of system limitations, Inventory Services must clear out the *DEFINE NU1 screen at the end of the fiscal year and assign temporary numbers.

38. Additional Information: 900000 Numbers Notify Inventory Services: If you have temporary numbers for equipment other than software and artwork. Example: 988889-Dell G4 computer was tagged 778904 Provide Inventory Services with the serial number. Self-tagging: Tag equipment. Send spreadsheet to Inventory.

39. Off-Campus Equipment Checkout logs are required to be kept for all equipment located off campus. A copy of this form or equivalent must be kept in the department and with the equipment at all times. Note: Departments are responsible for all their equipment, whether located on campus or off.

40. Off-Campus Equipment Schedule a day for all off-campus equipment to be returned for scanning. Notify all staff who have equipment removed from campus to return those specific items on the scheduled date for inventory scanning. For a sample form, go to: http://www.utexas.edu/business/accounting/hbp/fo rms/inv-offcampus.pdfhttp://www.utexas.edu/business/accounting/hbp/fo rms/inv-offcampus.pdf.

41. Step 3: Reconcile Scanning takes care of most updates. Make notes on the NVP report printout of updates you need to make in *DEFINE. Use either NVP or NV1 to make updates. NVP sorts by unit code NV1 sorts by inventory number (more options) No item’s status should be left blank. Certifications will not be complete until all blanks are finalized with either “Found” or “Missing.”

42. Updating in NV1 On the NV1 detail screens, following fields may be updated by the department: item description serial number & model number (screen 2) building locations room numbers equipment status—found or missing screen 6—comments

43. Updating in NV1 Use Screen 6 to retain comments. Location updates for inactive equipment due to threshold write-offs can also be made on this screen. These fields should be updated if the current fields are not accurate. If you do not have update access in *DEFINE, your electronic office manager can assist you.

44. Are You Really Missing an Item? Before you mark that item as missing in *DEFINE NV1: Make sure it is not being kept off campus, being repaired, or overlooked in the initial scan. Check your department records and databases for possible transfers, cannibalizations, disposals, etc.

45. Are You Really Missing an Item? Before you mark that item as missing in *DEFINE NV1: If the item you cannot find is a vehicle, please file a police report with UTPD. They have been successful in locating missing vehicles that have been abandoned or were impounded. Fleet Management requires that the police be notified when a vehicle cannot be located. If you can’t locate the item, mark it as “missing,” but look for it the next time you perform your physical inventory. Remember, every item counts.

46. Where on NV1 Would I Show This Item as Missing?

47. *DPUSER http://www.utexas.edu/business/accounting/pubs/txmail.pdf Example: Screen 3 shows that a printer was last scanned by INCPJ in September 2003. You cannot find this printer, so you want to know who INCPJ is to follow up with him/her regarding this piece of equipment. If you follow the *DPUSER instructions, you should be able to get the following information: _ JACOBSON,CECILIA INCPJ INVENTORY 232-7560 Looking up a Login ID

48. What choices do I have? If you want the equipment back, you can retrieve the item. Transfer ownership by doing an CCART transfer. Looking up a Login ID

49. View Percentage of Unfound Items Unfound percentage includes items indicated as missing or left blank. Your NVP report has a percentage figure at the end of the listing. 1.To view your unit’s unfound percentages without running a report, go to *INPERC from the COMPASS screen. 2.Press ENTER and another screen will appear. 3.Type the first four digits of your unit code, and press ENTER.

50. View Percentage of Unfound Items Comp Unit Unfound % Unfound Depr Amt Total Depr Amt As of Date/Time ---- ------- ----------- ---------------- -------------- --------------- 0 5100 99.49 % 150,147.27 150,906.50 12/08/03 00:48 0 5100000 99.49 % 150,147.27 150,906.50 12/08/03 00:48 You should not have at or above two percent unfound. If you do, there could be a penalty assessed. The penalty would be assessed on the depreciated amount of any missing or stolen items with a disposal of 17, 18, 20 or 21.

51. Step 4: Report Download Certification form. The Certification Form must be complete and signed by: The department chair department inventory contact (you) A current and complete NVP report must be included with the certification form Do you know about the Physical Inventory Kit, FAQs, and other helpful tools on the Web? http://www.utexas.edu/business/accounting/in

52. Certification of Departmental Annual Physical Inventory Completed at the end of scanning your inventory. Must be signed by your administrator or department head. This process and documentation certifies that: all items have been inventoried. all items are accounted for within your department.

53. Tips, Tidbits, and Hints Start early. Keep a trail of paperwork. Make copies. Use correct inventory forms. Notify Inventory Services of untagged or tagged equipment not on *DEFINE that meets the threshold. Request a new barcode/tag when: damaged worn missing will not scan Self-tagging, communicate New Tag info.

54. Safeguarding Assets Be organized. Keep a record of off-campus equipment. Be observant. Frequently monitor all current assets. Be perceptive. Keep an eye on equipment awaiting Surplus pickup. Be efficient. Keep track of assets out for repair.

55. Relinquishing Inventory (Inventory Removal) Transfer or Removal Three-Step Process Types of Removals

56. Transfer or Removal? Will ownership of the property remain with the university? Yes Use a CCART. This includes “donations” to other departments, and… Transfers to Surplus. No Submit an inventory removal request to Inventory Services. Do this before the item leaves the university.

57. Surplus Property - Unit (4500- 999) When property exceeds its life expectancy and/or is no longer needed, send to Surplus. CCART creates an NT1 Electronic Transfer doc. Be sure to remove insurance. For questions, please contact Risk Management at 471-3723 or e-mail oa.riskmgt@austin.utexas.edu. oa.riskmgt@austin.utexas.edu Erase all sensitive data from hard drives. Keep a list of outstanding NT1 document IDs until the transfer has been processed.

58. What is a Removal? Removals do not include: transfers to surplus. transfers to other departments. “missing” items. Removals do include: cannibalization PI transfer stolen donations trade-in sale other

59. Cannibalization Prior approval: Is not required if the property value is depreciated to $0 and if the property is not federally owned. Is required if the property still has value. Is required if the property is Federally owned. Must be depreciated to $0 value. The only exception to the approval rule. Do not trash any spare parts.

60. Cannibalization YES Remove the parts needed Send the excess to Surplus NO Dismantle the equipment Submit barcode tag with the IRR form Are parts left over?

61. PI Transfer Definition: Principle Investigator (PI) leaves the university and takes research equipment with him/her. Usually involves 26-accounts. Transfers to other Texas state agencies require transfer through the State Property Accounting (SPA) system and may take more time and additional steps. 60 Days before the PI leaves, submit the IRR and letter of justification. A PI is never allowed to take equipment without prior approval from the property manager.

62. Stolen File police report immediately. Complete an IRR form with the authorized signature of department. Prepare letter of justification. Submit all of the above to the Inventory Services mail code K5300.

63. Donations Donations to other Texas state agencies Processed through the State Property Accounting (SPA) system. May require more processing time. Donations to non-state agencies In-state require certificate of eligibility from the Texas Facilities Commission. Out-of-state: Similar documentation must be provided. Only nontechnology items are allowed.

64. Donations Technology Equipment State law mandates priority. school districts Texas correctional institutions Hard drives must be cleaned. Verification must accompany the IRR form.

65. Traded-in Notate on the P.O. of the new item: inventory number serial number trade-in value type of trade-in even trade discount upgrade Note: Proper processing should not require a removal. If trade-in is not recorded properly, complete an IRR form and submit to Inventory Services.

66. Sale Should go through Surplus Unless there are extenuating circumstances. Departments can request that proceeds from the sale be deposited into their account. Sales outside of Surplus Submit an IRR and letter of justification. Approvals must be granted before the sale is conducted. A copy of the check used for payment must be submitted to Inventory Services.

67. Other Returned to vendor Damaged items or items returned to vendor for some other reason. After returning it, submit an inventory tag. Returned to the agency sponsoring a project grants military contracts Anything that doesn’t fit previously covered Submit as much documentation as possible

68. Step One: Approval Before disposing of university property, approval must be granted by the property manager. Submit the inventory removal form and all necessary documentation to Inventory Services. The form is available at http://www.utexas.edu/business/accounting/for ms/inv-remove.pdf

69. Inventory Removal Request Form 1. Department name and unit code: 2. Equipment to be removed: Inventory # Description Purch. Date Cost Depr. Value 3. Reason why removal is requested: (see instructions on page 2 for further details) [ ] Stolen [ ] Cannibalization [ ] Donation [ ] Sale/Sealed Bid/Auction [ ] P.I. Transfer [ ] Other: Please explain 4. Department Signatures:Approval Signatures: _____________________________________________________ Department Administrator/HeadInventory Supervisor _____________________________________________________ Department Inventory ContactProperty Manager * Please attach any supporting documentation and a letter of justification. When completed send this form and the supporting materials to Inventory, Office of Accounting, at campus mail code K5300.

70. Step Two: Removal of Property After receiving approval from the property manager, you may remove the property. Be sure to document the removal. Get Receipts.

71. Step Three: Removal from *DEFINE Inventory will remove items from *DEFINE after: documentation has been submitted. sales receipts have been received. the property manager has approved. Note: Submit receipts to have the item removed from your inventory list within 30 days.

72. Inventory Services For assistance with all general inventory questions, contact the User Services help line at: 512-471-8802 askUS@austin.utexas.edu For scanner-related requests or appointments, email scanhelp@austin.utexas.edu.scanhelp@austin.utexas.edu For questions about private or federally-funded items, email InvFed@austin.utexas.edu.InvFed@austin.utexas.edu