1. Controller’s Office Department Asset Custodian Training Controller’s Office Capitalized Asset Management

2. Controller’s Office Introduction  “The head of a custodial department and the Principal Investigator have primary responsibility for the care, maintenance, records, physical inventory, control, and disposition of inventorial equipment and other University or extramurally-funded property.” UCOP – BUS-29, Section C

3. Controller’s Office Introduction The purpose of this workshop is to acquaint YOU as asset custodians with policies and procedures, tools and resources that are available to you in caring for the University’s capitalized assets. You can thus fulfill the goal of safeguarding the high-value assets of the University in the best manner possible.

4. Controller’s Office Who Are Those Guys? CAM is a part of UCSF Controller’s Office Capital Accounting. It is responsible for:  Maintaining a database of asset information in the PeopleSoft Enterprise Online Financial System,  Capitalizing assets purchased, leased, donated or transferred to UCSF,  Monitoring campus-wide adherence to University policies and guidelines,  Maintaining inventory controls and accountability systems,  Organizing and implementing the campus-wide biennial physical inventory

5. Controller’s Office Who Are Those Guys? (continued) - Reviewing and approving asset transfers to other UCSF departments, UC campuses or non-UC entities, - Reviewing and approving the disposal of excess property in accordance with applicable policy and regulations and - Providing consolidated reporting to UCOP and other funding agencies.

6. Controller’s Office A couple of definitions…  Capital Asset - Any purchase of physical equipment with a cost greater than or equal to $5000- (including sales tax, start-up supplies, delivery, and installation) with a useful life greater than one year.  For example, if you purchase a piece of equipment for $4800- it will most likely be considered a Capital Asset after taxes, etc.  Custody Code – The custody code is a 4-digit code issued by CAM at the behest of the department. Each custody code requires a custodian who is responsible for tracking the equipment. Departments are required to supply a custody code number to Procurement Services when a requisition is created.

7. Steps in the purchase of Inventorial equipment 4. Biennial inventory and/or changes to equipment status are updated with CAM. 3. Custodian receives tag, affixes to equipment, and returns tag form with model, serial#, and location 2. Equipment identified, coded, and assigned a tag# 1. Purchase order initiated in Bearbuy

8. 4. Biennial inventory and/or changes to equipment status are updated with CAM. 3. Custodian receives tag, affixes to equipment, and returns tag form with model, serial#, and location 2. Equipment identified, coded, and assigned a tag# 1.Purchase order initiated in Bearbuy Steps in the purchase of Inventorial equipment

9. Controller’s Office Steps in the Purchase of Inventorial Equipment  Purchase Order generated in BearBuy ◦ At this time the Capital Equipment form should be used and your custody code should be assigned by the requestor/purchaser.

10. Purchase Order in BearBuy

11. Controller’s Office  Use this form for any Capital Equipment Purchase or Capital software purchase

12. Controller’s Office  Be sure to fill in the custody code under the “Asset Management” tab on Purchase Order

13. Controller’s Office  Purchase Order generated in BearBuy ◦ At this time the Capital Equipment form should be used and your custody code should be assigned by the requestor/purchaser.  Get to know/contact the purchasers for your department.  If you do not know who they are, get in touch and I’ll send you a list.  Familiarize them with your code & when to use it.

14. 4. Biennial inventory and/or changes to equipment status are updated with CAM. 3. Custodian receives tag, affixes to equipment, and returns tag form with model, serial#, and location 2. Equipment identified, coded, and assigned a tag# 1. Purchase order initiated in Bearbuy Steps in the purchase of Inventorial equipment

15. Controller’s Office  CAM (Capital Asset Management)reviews the PO: ◦ Assigns an EQ code (this is a code used to establish useful life of equipment) ◦ Assigns a tag# (You will receive the tag with tag form shortly after to fill out).

16. Property Tag

17. 4. Biennial inventory and/or changes to equipment status are updated with CAM. 3. Custodian receives tag, affixes to equipment, and returns tag form with model, serial#, and location 2. Equipment identified, coded, and assigned a tag# 1. Purchase order initiated in Bearbuy Steps in the purchase of Inventorial equipment

18.  Custodian Receives Tag: ◦ Affix tag to associated equipment ◦ Review description and send back the model number, serial number, and location

19. Controller’s Office Role of the Custodian  Liaison between CAM and the Department  Primary contact point for Department  Provide current information to CAM to assure accurate records  Insures University and Federal requirements are met (i.e. donations, transfers, disposals, etc.).

20. Controller’s Office Definitions  For discussion purposes today the only definitions that will be included are those required to create an asset file in PeopleSoft and for reporting to UCOP. However, the manual lists many others and the custodians should be familiar with all of them.

21. Controller’s Office Definitions (continued)  - CAAN/Location – An up to 8-digit code representing building AND room. Federal Regulations require both building and room number.  - Custody Code – The custody code is a 4-digit code issued by CAM at the behest of the department. Each custody code requires a custodian who is responsible for tracking the equipment. Departments are required to supply a custody code number to Procurement Services when a requisition is created.

22. Controller’s Office Definitions (continued)  Inventorial Equipment – A single unit, freestanding, non-expendable, with a cost (including sales tax, delivery, and start up accessories and supplies) equal to or greater than $5,000.00.  Property Number – A nine-digit number printed onto a barcode tag that is affixed to the equipment as a unique identifier.

23. Controller’s Office Definitions (continued)  Groupings within the 9 digits – nn+nn+n+nnnn  First two digits –year asset was added to the asset inventory (last 2 digits)  Second two digits – UC Campus that originally acquired asset (e.g. 10=Berkeley; 20=S.F.)  Fifth digit (under UCSF) - 0 for Campus, 3 for Gallo Clinic, 5 for Medical Center, and 9 for Vehicles.  Last four numbers - issued sequentially to uniquely identify each asset.

24. Controller’s Office Definitions (continued)  Manufacturer – The company that produces or OEMs the equipment  Model Number – The number assigned by the company to identify specific versions of equipment.  Description – This is a simple one or two-word field to help the custodian locate equipment.  EQ Code – A 5-digit (one alpha and 4 numeric number) code that is based on the type of equipment and is used by UCOP to calculate depreciation.

25. Controller’s Office Primary Responsibilities  1) Change of Custodian  Custodian Maintenance Form  2) Property Tag  3) EIMR form  All additions to inventory  All removals of equipment  4) Biennial Physical Inventory  5) Physical Inventory Audit

26. Controller’s Office Change of Custodian  Fill out Custodian Maintenance form.  Include all custody codes the change is applicable to.  Obtain approval (sign off) from the Financial Administrator or Business Officer.  Send or email the form with Section 2 completed to CAM.

28. Controller’s Office Primary Responsibilities  1) Change of Custodian  Custodian Maintenance Form  2) Property Tag  3) EIMR form  All additions to inventory  All removals of equipment  4) Biennial Physical Inventory  5) Physical Inventory Audit

29. Controller’s Office Property Tag

30. Controller’s Office Primary Responsibilities  1) Change of Custodian  Custodian Maintenance Form  2) Property Tag  3) EIMR form  All additions to inventory  All removals of equipment  4) Biennial Physical Inventory  5) Physical Inventory Audit

31. Controller’s Office Provided by CAM Let’s us know what you want to do. Item Description 1) Surplus 2) Transfer to another department 3) Sale 4) Remarks, always include Signatures

32. Controller’s Office New Assets  Equipment may be added to a department’s inventory in the following ways: - A Purchase Order is processed through Procurement Services. - A Lease Agreement > $100,000 total value - A department receives a gift (cleared by Development Office) - Equipment is transferred from another institution or UC Campus - Equipment is borrowed from an outside institution

33. Controller’s Office Principles of Equipment Disposals  A department may dispose of equipment ONLY IF the University holds title.  An EIMR must be submitted whenever equipment is to be removed from a department’s inventory.

34. Controller’s Office Retiring Assets 1)Send to Surplus Sales for public sale or disposal. 2)Destroyed or cannibalized for parts 3)Stolen. EIMRs reporting stolen equipment MUST include a police report number. 4)Intercampus Transfer - letter from department head - Other campus EIMR with signature of recipient campus equipment manager - EIMR from department 5)Lost

35. Controller’s Office Retiring Assets (continued) 6)Donate to a non-profit or educational institution. The following procedure must be followed per BUS-38: - Requesting agency submits request on letterhead - Dept Head verifies in writing that equipment is no longer useful in dept - Department submits request, letter, and EIMR to CAM. 7)Sold to another non-UC non-profit entity in conjunction with faculty move.

36. Controller’s Office Primary Responsibilities  1) Change of Custodian  Custodian Maintenance Form  2) Property Tag  3) EIMR form  All additions to inventory  All removals of equipment  4) Biennial Physical Inventory  5) Physical Inventory Audit

37. Controller’s Office Physical Inventory - Purpose  The reason for the physical inventory is to produce an accurate inventory through:  Physically locating equipment that is in use,  Removing from the database equipment not found, and  Adding high value equipment which is being used but is not included in the asset list.  Updating existing equipment attributes (Description, Mfg., Model, Ser. ID, etc.)

38. Controller’s Office What Is At Stake?  Federal funding requires system-wide compliance with their asset management policy and procedures  Certification as a Federally compliant research facility is contingent on adherence to established guidelines  UC Office of the President financial reporting requires up-to-date inventory information  Campus Facility and Administration (F&A) rate is affected and  Insurance payments in case of loss, theft, or disaster hinges on substantiation of location recorded in the system.

39. Controller’s Office Physical Inventory – Process  Per State and Federal regulations complete inventory of campus and medical center required every 2 years.  CAM will provide custodian with a list of equipment by custody code.  Custodian embarks on search or organizes search party to locate and verify each piece of equipment listed.

40. Physical Inventory Process (Continued) The notification email will include the following attachments:  List of Assets List is arranged first by building code/room number, then by property tag number and furnished in both PDF and Excel file formats.  Instruction Sheet  Link to online tools Tools include schedules, forms, building code lists, comprehensive information and instructions and other resources helpful toward a successful completion. 10/4/2013 PROCESSES

41. Controller’s Office Process (continued)  During the inventory process the custodian should verify the following attributes which can be changed if necessary:  Location - Building (CAAN) and room number  Description  Manufacturer/Model Number  Serial Number (should be provided if not listed)

42. Controller’s Office Process (continued)  Attributes that cannot be changed by the department are: - Property Tag Number - Cost - Original Dept ID/Fund

43. Controller’s Office Primary Responsibilities  1) Change of Custodian  Custodian Maintenance Form  2) Property Tag  3) EIMR form  All additions to inventory  All removals of equipment  4) Biennial Physical Inventory  5) Physical Inventory Audit

44. Controller’s Office Physical Inventory – Field Audit  All submittals for a particular month are subject to a random sampling audit.  CAM randomly selects 10% of the asset population sent in during the targeted month.  CAM emails custodian with assets to be verified clearly identified.  A CAM team member and the department asset custodian travels to the location specified in the physical inventory findings by appointment to confirm accuracy of reported data.  An error rate of 10% or less of sample population constitutes a successfully- completed physical inventory.  An error rate of greater than 10% requires a second random sampling audit.  If the second audit is unsuccessful, all custodial departments submitting physical inventories for the target month will need to re-take their physical inventories. PROCESSES

45. Controller’s Office Physical Inventory – Summary The departmental physical inventory is considered complete when:  Custodian returns listing with corrections;  CAM enters corrections and sends the updated inventory report to custodian;  Custodian and department head signs off that the inventory report is accurate;  Statistical sampling audit produces 10% or fewer errors. PROCESSES

46. Controller’s Office Where’s the Help?  Asset Custodian Training Workshops held periodically  Controller’s Office Website at: http://controller.ucsf.edu/http://controller.ucsf.edu/ Capital Accounting & Equipment  FAQs  Policies  Procedures & Job Aids  Training  Forms  Contacts  Department Asset Custodian Manual handed out at the workshops and available for viewing or printing from Controller’s Office website  WebLinks Asset Management Report (AM) module accessed for historic equipment information  Desktop Training Program, one-on-one training for asset custodians. CAM sends a team member at department’s invitation to discuss the responsibilities of the position, how to access online resources and any unique challenges the custodian faces.  Controller’s Office Monthly Electronic Newsletter EPILOGUE

47. http://controller.ucsf.edu/

49. Controller’s Office http://controller.ucsf.edu/

50. http://cpbc.ucsf.edu/

51. COA Training 51

52. COA Training 52

53. COA Training 53

54. Who Can I Call? EPILOGUE Physical Inventory Contact – Terence Hurley terence.hurley@ucsf.edu 415-502-2657 terence.hurley@ucsf.edu Equipment Accounting - Angela Farren angela.farren@ucsf.edu 415-502-5642angela.farren@ucsf.edu Equipment Invoices - Jim Antuk jim.antuk@ucsf.edujim.antuk@ucsf.edu 415-476-2885 Capital Accounting Supervisor – Renee Boyd renee.boyd@ucsf.edu 415-502-3042 renee.boyd@ucsf.edu General Accounting Manager – Amy Nichelini amy.nichelini@ucsf.edu 415-476-2997 amy.nichelini@ucsf.edu

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