It the responsibility of the executive head of your state agency to maintain the property records of those assets under the control of the agency. This requirement is universal to all agencies and state institutions whether or not they use AASIS.

Your agency has primary responsibility for the following: Take regular physical counts Update records on a timely basis Remove disposed items promptly Investigate missing items Use an agency specific inventory tag system

Verify that the asset number, inventory number, serial number and description match the asset being submitted when you fill out the SDF. That is why it is so important to keep good property records that can identify a specific asset; for audit purposes and to identify like items. If you have 18 Dell computers, the only thing different about them will be the serial number, or inventory number. If you dont include those identifiers on your asset master records and the SDF, then you cant be sure which of the 18 computers you are turning in or which one is lost. At some point you might have to go back to that SDF and determine which of the 18 computers you actually turned in and which ones you still have on hand. BE SPECIFIC!!!

M & R surplus disposal M & R certificate of property disposal Transfer Credit for state property There are only a few specific ways an agency can take an asset off their books of record.

Eventually, a capital asset will become no longer useful. It could be considered surplus, broken and un-repairable or scrap. The physical condition has deteriorated to a point that the item can no longer be used for its intended purpose. The cost of maintaining the item exceeds the benefit of retaining the item for use. The item is still useable but is no longer needed for operations. The activity in which it was used is discontinued and there is no alternative use for the asset. The asset has become obsolete. New technology provides benefits that the current asset cannot provide. It then goes to M & R for disposal/transfer.

Arkansas Financial Management Guide Procedures for Lost/Stolen Property : Lost/Stolen Property When an agency is unable to locate property contained on its capital asset records, the following possibilities must be considered: The property was turned in to the proper disposal agency and the property records were not correctly posted. The location of the property on the records is wrong, or it was relocated and the new location was not recorded on the records. The property has been lost. A theft has occurred.

When property on record cannot be located, the executive head of the agency should immediately appoint an individual with supervisory or managerial responsibility to investigate the case and present the facts. A memorandum from the executive head of the agency should be written to the appointed individual notifying the individual of his/her investigative duties. The appointed individual should proceed in the following manner:

Obtain the full identification of the missing property and last recorded location from the agency property records. Check the last recorded location and adjacent areas. An interview should be conducted with all individuals assigned to the area where the missing property was last located according to the property records. Conduct a search of property disposal and transfer documents to see if the property could have been turned in to Marketing and Redistribution or transferred to another agency. Establish whether the property involved may have been temporarily loaned to other activities. If so, the activities identified should be searched in an attempt to locate the missing property.

If the above actions fail to locate the missing property, all areas occupied by the agency should be searched beginning with the activities most likely to have a use for the property. If at any time during the investigation it is suspected that a theft has occurred, the matter should immediately be brought to the attention of the agency executive head. If after notification the agency executive head also suspects theft, the appropriate law enforcement official(s) should be contacted for investigation and further action as warranted. If at any time during the investigation process the missing property is located, the proper location shall be recorded on the property records. At the conclusion of the investigation the appointed investigator shall submit a final investigation report outlining the circumstances surrounding the case and recommendations to the agency executive head for any action deemed necessary.

If the agency executive head is satisfied that the missing property cannot be located after the investigation report, a Credit for State Property Form (P ) along with copies of the investigation report and the police report in the case of stolen property shall be prepared and submitted to the Department of Finance and Administration-Office of Accounting, Administrator as the DFA Directors designee for approval. Upon receipt of an approved Credit for State Property Form, P , the agency may remove the missing property from the capital asset records. This approval becomes part of the documentation to be used on the audit of the agency's property records by the Division of Legislative Audit. The agency executive head shall take any action he/she considers appropriate to prevent recurrence. (ACA )P P Be specific on the reason for the request on each item. Missing" or Lost is not enough. Show that there have been internal controls or procedures put in place for loss prevention.

Retirement Surplus Disposal Form(SDF) Certificate of Property Disposal(CPD) Credit for State Property(CSP)

The agency must retire assets that have been accepted by M & R(SDF/CPD) or approved by DFA- OA(CSP). M & R does not retire your assets …. It is your responsibility to make sure the items that have been turned in and accepted are removed from your fixed asset list either by the agency or DFA- OA(service bureau agencies).

If your assets are on AASIS : Use date of SDF-CPD-CSP as value date. Enter the SDF-CPD # in the text field.

TRANSFERS BETWEEN STATE AGENCIES At times, you may transfer your surplus property to another state agency that has use for it. If the transfer also involves an exchange of money, the transfer must be handled by M&R. If the transfer does not involve an exchange of money, the transfer is handled by DFA-Office of Accounting. Anytime an asset is transferred between state agencies, the book value remains the same. The net effect for the state is zero. A voluntary contribution of resources between state agencies is not a donation. Such transaction should be accounted for as a transfer.

CONTACT INFORMATION Gary Fixed Asset Manager DFA-OA-CAFR Linda Fixed Asset Specialist DFA-OA-CAFR