1. Inventory Overview Inventory Services The University of Texas at Austin

2. Objectives Importance of Inventory Management Political & Regulatory Requirements Handbook of Business Procedures (HBP) Federal Acquisition Regulations (FAR) System Texas State Government Code State Property Accounting (SPA) System UT Systems Requirements

3. Why is inventory management so important? The University of Texas at Austin has over $2.8 billion worth of assets to maintain and report to the State of Texas. Additionally the University acts as a custodian for more than $160 million in federally owned assets The University must remain accountable for these assets and safeguard them properly Reduces the risk of potential audit findings Protects the University from potential negative publicity Current and future federal and private funding depends on an effective/accurate asset management system It is required by state and federal law

4. Handbook of Business Procedures (HBP) The Handbook of Business Procedures (HBP) contains the fiscal policies and procedures for The University of Texas at Austin The HBP is designed to provide information and guidance to departments regarding the appropriate handling of financial matters Part 16. Inventory Control and Property Management is specifically for inventory management Part 16. Inventory Control and Property Management

5. Federal Acquisition Regulations (FAR) Regulations administered by the General Services Office, The Department of Defense, and NASA for the purpose of governing the acquisition and treatment of supplies and services purchased with government appropriated funds. Federal Acquisition Regulations (Part 45) Federal Acquisition Regulations

6. Texas State Government Code State agencies with assets purchased from state funds must comply with the Texas State Government Code, specifically: 403.272 - Responsibility for Property Accounting 403.272 All personal property owned by the state shall be accounted for by the agency that possesses the property 403.273 - Property Manager; Property Inventory 403.273 The property manager of a state agency shall maintain the records required and be the custodian of all property possessed by the agency The property records of a state agency must accurately reflect the property possessed by the agency A state agency shall conduct an annual physical inventory of all property in its possession

7. State Property Accounting (SPA) Provides detailed information on inventory policies, as well as, an introduction to capital and controlled assets Used for Inventory Accounting reports and reconcile inventory records and values to both the Annual Financial Report (AFR) Schedules and the State Property Accounting (SPA) record reports SPA Process User’s Guide https://fmx.cpa.state.tx.us/fmx/pubs/spaproc/index.php Chapters 1-2 Appendices A-C

8. UT Systems Requirements Place an emphasis on responsibility and accountability for each employee that has been entrusted with the asset Maintain a strong record of accountability with the state of Texas UT System - Accounting and Purchasing Services