Responsibilities and procedures described in this section apply to the acquisition, transfer, disposition, reporting, and physical inventory of university assets. JMU procedures are applied in conjunction with the CAPP Manual and ASTM International E53 standards on Property Management Systems. These procedures are necessary to effectively manage and control university assets and to comply with federal, state, and university guidelines and generally accepted accounting principles.
Asset - (1) Anything owned having monetary value; (2) tangible or intangible items owned by an entity that have probable economic benefits that can be obtained or controlled by the entity (ASTM E2135).
ASTM International - One of the largest standards development and delivery systems in the world; ASTM standards are voluntary consensus documents that guide in research, design, manufacturing, marketing and trade.
Cannibalization - removal of servceable components from one item of equipment in order to install them on anoather item of equipment.
CAPP Manual - Commonwealth Accounting Policies and Procedures, developed by the State Comptroller
DPO - Departmental Purchase Order; usage of DPO is limited to items that are considered eVA exclusions.
EICR - Equipment Inventory Change Request form
ETF - Equipment Trust Fund; established to provide funding to update equipment needed for instruction and research; SCHEV, VCBA and the Department of Treasury share adminitrative responsibilities
ESN - Equipment Service Number; blue decal assigned to computer equipment by PC Services
Equipment - Agency property of any kind, which meets the following criteria: Is complete in itself; does not lose its identity or becomes a component of the building where it resides; and, is of a durable nature with a useful life of two years or more
eVA - electronic Virginia, the State's online procurement system, used by the university for purchases
FAACS - Fixed Asset Accounting And Control System, the statewide property management system previously used by the university
Financial Reporting - An organizational unit within the Finance Division which is responsible for accounting and financial reporting of fixed assets, including related debt and real esate and equipment operation leases.
Fixed Assets - When lower case (fixed assets), a general term which includes all types of fixed assets: land, buildings, improvements other than buildings, construction in progress, equipment, library/reference materials, artwork and historical collections, and certain internal-use software; when capitalized (Fixed Assets), the organizational unit within the Accounting and Reporting area of the Finance Division, which is responsible for the accounting and financial reporting of fixed assets, including tracking titles, deeds, and easements, as well as periodic inventories of fixed assets
Fixed Assets Coordinator - The liaison between a university department and the Office of Fixed Assets and Surplus Property. This person is designated by a Department Head and is responsible for maintaining equipment records, assisting with the annual physical inventory, scheduling appointments for decaling equipment, and communicating with Fixed Assets staff to ensure accurate equipment data through the use of the Equipment Inventory Change Request (EICR) form. The Fixed Assets Coordinator is responsible for completing EICR forms for his/her department to send items to the Surplus Property Warehouse, transfer items to another department, and accept items transferred to his/her department from another.
PO - Purchase Order
SCHEV - State Council of Higher Education for Virginia
Sunflower System - the university's web-based asset management system, which supports all lifecycle asset management events from acquisition through disposal, including barcode scanning sofeware for physical inventories.
Surplus property - When lower case (surplus property), equipment and supplies no longer needed by a department awaiting transfer or disposal; when capitalized (Surplus Property), the section of Fixed Assets responsible for managing surplus property
VCBA - Virginia College Building Authority
With the exception of donated assets, fixed assets are accounted for at the original acquisition cost, which includes the purchase price or constructed cost, plus any cost incurred to place an asset into service. Donated assets are recorded at fair market value at the date of donation. Asset acquisitions that have an original unit cost of $5,000.00 or greater and a minimum useful life of 2 years are capitalized for inclusion in the university’s financial statements and recorded in Sunflower Systems. Acquisitions of ETF assets costing between $500.00 and $4,999.00 are considered controllable and recorded in Sunflower Systems to provide accountability and to safeguard the asset until ownership passes to the University. Additionally, assets on loan to the university and assets from a granting agency which require training, and cost between $2,000.00 and $4,999.00, are considered controllable and recorded in Sunflower Systems to provide accountabiliity and to safeguard the assets.
The Equipment Trust Fund Program administered by SCHEV provides an additional funding source that allows higher education institutions to purchase equipment for instructional use. Equipment purchased with Trust Fund monies is not owned by the University, but is tied to leasing agreements with the VCBA. Once a leasing agreement has been satisfied (for a particular allocation), ownership passes to the University. In addition to general rules applicable to all equipment, specific guidelines apply to the acquisition, maintenance, and disposal of ETF equipment. Failure to satisfy these requirements could jeopardize future allocations of ETF monies. Refer to specific ETF guidelines listed below:
ALL ETF EQUIPMENT:
By analyzing daily the "Potential Fixed Assets" report generated from the university's financial information system, the Fixed Assets Assistant Manager identifies equipment purchases for decaling. The report provides a list of all accounts payable vouchers recorded in equipment accounts (2xxxxx) and select service and supply accounts (1xxxxx) regardless of cost. The Assistant Manager selects expenditure transactions that are $5,000.00 or greater, Equipment Trust Fund purchases (all regardless of cost), Local/Agency fund purchases ($5,000.00 or greater) or partial payments. Actual scanned vouchers are reviewed in detail online. Equipment purchases are written up on a Sunflower systems input document and assigned barcade decal numbers based on the following criteria:
|FUNDING SOURCE||ORG CODES||DOLLAR CRITERIA||DECAL NUMBER SERIES||DECAL COLOR & DESCRIPTION|
|Operating(E&G, Aux)||1XXXXX or 3XXXXX||$5,000 or Greater||Decals Prefixed with "1"||Black & White - Property of JMU|
|Capital Projects||7XXXXX||$5,000 or Greater||Decals Prefixed with "1"||Black & White - Property of JMU|
|Local Funds||8XXXXX||$5,000 or Greater||Decals Prefixed with "1"||Black & White - Property of JMU|
|100062||All Regardless Of Cost||Decals Prefixed with "8"||
Red & White -
|Grants &Contracts||5XXXXX||$5,000 or Greater||Decals Prefixed with "9"||Red & White -
Property of JMU Restricted
Decal numbers assigned to assets are recorded in an Access database to track issuance for tagging and return of the input document for entry in SunFlower Systems.
Acquisitions of land, buildings, and improvements other than buildings are identified through the capital project process. Financial Reporting personnel perform a year-end review of non-capital projects coordinated primarily through Facilities Management.
Fixed asset acquisitions are made subject to approved operating and capital project budgets in conjunction with Section 7005, Procurement.
Following assignment of decal numbers, the departmental Fixed Asset Coordinator is contacted to schedule an appointment for decaling equipment purchased by their department. Information identifying the equipment is provided when the appointment is set up. Decaling should be completed within 30-45 days following acquisition of the equipment. Decaled assets are listed on departmental inventory reports that are updated annually by Fixed Assets through the physical inventory process. Each department has an obligation to notify Fixed Assets if they have untagged equipment with a value of $5,000.00 or more.
During the decaling process, data such as serial number and location (building and room) is gathered to complete the fixed asset record and recorded on the Sunflower Systems input document. This information is not typically found on the supporting purchasing documentation. ASTM Standard E 2631, Standard Practice for Physical Placement of an Entity-Controlled Supplemental Identification Label, is followed with the decaling process.
Following the decaling of equipment, transactions are entered into Sunflower Systems to record university fixed assets and related data. Edits are verified to ensure the accuracy and integrity of the data that was entered.
.630 New Asset Report
To ensure the new assets are recorded in the correct responsible department and with accurate descriptions and locations, a monthly asset report is sent to any department that has received new assets tagged within the prior month according to Fixed Assets' records. This report is sent to the departmental Fixed Assets Coordinator, who is asked to review the report for any inaccuracies and respond as having recieved the report and reviewd it. Any errors noted are corrected through miscellaneous change entries in Sunflower Systems.
At some point, a department or office may no longer need a piece of equipment currently in their possession. If the equipment has a white decal with red lettering (numerical sequence beginning with "8" or "9") the department should contact Fixed Assets for transfer or disposal instructions. Equipment with a white decal and black lettering (numerical sequence beginning with "1"), as well as equipment without decals, may be transferred or disposed of as listed in the following two sub-sections.
In order to comply with federal, state, and university and ASTM International guidelines for maintaining accurate fixed asset records, all university departments are required to conduct a physical inventory of equipment under their control on an annual basis. A physical inventory involves the verification of all equipment within a department by actual observation and count. Departments are encouraged to maintain up-to-date equipment records in order to assist in their annual physical inventory process. To conduct annual physical inventory verifications for departments, a scanned verification is performed by Fixed Assets staff members using barcade readers to scan asset ID decals. Fixed Assets Coordinators assist with the scanned verification.
The Sunflower Systems Inventory Report is used to help with the annual physical inventory. The Sunflower Systems Inventory Report is emailed to the department's Fixed Assets Coordinator with a memo which provides instructions on the inventory process.
|Tag Number: Property of JMU ID number (barcode decal) affixed to the equipment|
|Official Name: Type of asset (examples: desktop computer, pickup truck, equipment)|
|Manufacturer: Company that manufactures the asset|
|Model: Number or name assigned by the manufacturer to the equipment|
|Description: Additional descriptive information regarding the asset|
|Serial Number: Distinguishing number given to each model of equipment|
|ESN: PC Services assigned identifier for computer related assets|
|Total Cost: Original purchase price, including installation|
|Department Code: Identifier code assigned by Fixed Assets to each JMU Department|
|Acquisition Date: Date JMU received the asset and/or date asset is placed into service.|
|Site: Zone the building is assigned to by Facilities Management (same as for work requests in AiM)|
|Building: Official building number assigned by Space Management and the abbreviated building name.|
|Room: Room number most closely associated with the asset location on the JMU building floor plans.|
After uploading and completing a scanned inventory verification in Sunflower Systems, a memo is sent to the Department Head confirming the inventory results and noting any missing assets. A copy of the Scanned Equipment Certification is provided to the Department Head for his/her records. If a missing asset(s) is noted with the inventory verification, a spreadsheet inventory of the missing asset(s) is provided with the memo.
Assets noted as missing for the first time are given the condition, Missing 1, in Sunflower Systems and show as such in the spreadsheet. The Department Head is asked in the memo to send a follow-up memo addressing the attempts to locate the missing asset(s).
Assets noted as missing for the second inventory cycle in a row are given the condition, Missing 2, in Sunflower Systems and show as such in the spreadsheet. The Department Head is asked in the memo to send a follow-up memo addressing further attempts made to locate the missing asset(s) since the prior inventory verification. The Department Head may also request in the follow-up memo to have any assets with a condition of Missing 2 removed from his/her inventory.
If a missing asset was purchased with Equipment Trust Fund monies and ownership has not passed to the university, the department is required to replace the ETF assets listed on the spreadsheet using departmental funds (refer to Section .500). In the memo, the Department Head is made aware of this policy and is provided with the net value of the equipment in the spreadsheet. This net value is the minimum amount that must be spent on a comparable equipment replacement. The Department Head must state in his/her follow-up memo when the replacement will be purchased and provide a purchase order number to Fixed Assets, once the order is placed.
A due date of two weeks is given to the Department Head for follow-up memos to be submitted to the Manager of Fixed Assets and emailed memos are acceptable. Once a follow-up memo is received, the Department Head receives a response, including approval of a request to remove Missing 2 assets from the inventory. Copies of all memos and correspondence are filed in the current year departmental inventory files maintained by the Inventory Specialists.
All University property that is determined to be excess, unwanted, or can no longer be utilized by a department is eligible for direct transfer to other campus departments or must be transferred to Surplus Property. The Surplus Property Coordinator redistributes and disposes of surplus property in compliance with state policies and procedures.
The following subsections provide procedures for transferring items to Surplus Property.
• Notify the Surplus Property Coordinator at extension 86931 or via e-mail to provide information regarding the types of items and volume for transfer.
• Complete an EICR form listing all items for transfer to Surplus Property. All items to be surplused must be recorded on an EICR form, regardless if they have an ID decal or not. The EICR form must be approved by the Department Head. Please Note: Grant and Equipment Trust Fund (ETF) equipment require pre-approval from an Inventory Specialist before they are eligible surplus items.
• Submit a work request to Facilities Management in AIM for items that are too heavy or cumbersome for one person to handle. The Surplus Property Coordinator will assist in making that determination. The Surplus Property Coordinator will pick up small items from your department within seven working days.
• Group surplus computing equipment in a central location (if possible) for PC Services to pick up.
• Have the department's Fixed Assets Coordinator fill out an EICR form. Note: Please record JMU decal numbers & ESN #’s on the form. Check the box in Section III and record "PC Services" as the Department Name. The EICR form must be approved by the Department Head.
• Email a scanned copy of the EICR form to email@example.com or mail the original to Fixed Assets @ MSC 5704. Keep a copy of the EICR form for departmental records. An Inventory Specialist will approve the EICR form and forward it to PC Services to schedule a pick-up of the suprlus computer equipment.
• Keep the EICR form with the equipment for pick up.
• PC Services staff will bring a copy of the approved EICR form when they pick up the surplus computer equipment and sign in Section III on the Received By line and record the date. This EICR form is then given to the department and a copy is made for the PC Services staff member.
• Mail the approved EICR form with PC Services' receiving signature to Fixed Assets @ MSC 5704 to ensure that JMU decal numbers are removed from your inventory.
• Please Note: Grant/Equipment Trust Fund (ETF) computer equipment require pre-approval from Fixed Assets before they are eligible surplus items.
• Transportation Manager of Facilities Management submits an EICR form to Surplus noting the vehicle's JMU decal number and description (make, model, FM vehicle number assigned, and VIN). Attached to the EICR form is a JMU Vehicle Condition Report, completed for each vehicle being surplused. This report is completed by the Facilities Management Garage Supervisor and provides the details Surplus Property needs in order to sell the vehicle.
• The Surplus Property Coordinator will inspect each surplused vehicle and complete section II of the EICR form, showing receipt.
• The following should be completed by the Transportation staff prior to any vehicle’s transfer to Surplus Property:
• Remove toolboxes, accessories, etc. to be retained
• Remove "James Madison University" logos and vehicle numbers
• Surplus vehicle keys should be kept at the USB Garage for availability when surplus vehicles are picked up for auction.
Once items have been transferred to Surplus Property, they are processed in the following ways, in order of priority:
To better serve departmental needs, the Surplus Property Coordinator will maintain a "wish list" and notify requestors when eligible items are received and available for transfer. At times Surplus Property will initiate contact with certain departments that are more likely to need specific types of items.
Departments should follow the procedures listed below to obtain Surplus Property items:
• Review the Current Inventory Listing of available items for transfer on the Surplus Property website or contact the Surplus Property Coordinator directly to inquire about availability of items.
• Visit the Surplus Warehouse during Open Warehouse hours (Wednesday afternoons from 1:30 - 4:30 p.m.) or schedule an appointment to visit the warehouse at a more convenient time.
• Select items suitable for your department. The Surplus Property Coordinator will assist with tagging selected items and completing a "no cost" Departmental Request Form for your department. Please note: Items with JMU decals will be added to your inventory.
• Submit a work request to Facilities Management in AIM for items that are too heavy or cumbersome for one person to handle. The Surplus Property Coordinator will assist in making that determination. The Surplus Property Coordinator will deliver small items to your department within seven working days.
Transfers occur at the request of an agency, through Surplus Property contacting a network of agencies, or DGS State Surplus contacting JMU with an agency's need. Surplus Property, as the releasing party, completes a State Agency Transfer form for all decaled and un-decaled items transferred to another agency.
• Offered to political subdivisions at fair market value
• Sold to the general public through public auction online (GovDeals.com)or a pre-price sale held at the Surplus Warehouse.
• Donated at a State Surplus-approved non-profit organization
• Scrapped or recycled
The University requires completion of this form when a department transfers equipment to another department, transfers equipment to Surplus Property, moves equipment to a different building, or disposes of property as referenced in .700 "Equipment Transfers & Disposals". The EICR form represents the main communication tool between departments and Fixed Assets regarding the transfer or disposal of property.
An electronic blank form is available online.
Complete original form and make one copy.
.1014 Where to Send Completed Form
Send original completed form to the Office of Fixed Assets and Surplus Property, MSC 5704, and retain one copy for departmental files as the Releasing department.
Department Name: The name of the department releasing the equipment for transfer, surplus, or disposal.
Prepared By: The Fixed Assets Coordinator’s name.
Date: The date the department completes the form.
Email and Extension: The email and telephone number for the Fixed Assets Coordinator.
Authorized By: The department head or approving authority’s signature.
Name and Title: The department head's printed name and title.
JMU Decal ID Number: Number from the barcode label affixed to the equipment that identifies asset as property of JMU. If no decal is found, please fill in as "none".
Description: Include name of item, manufacturer, model number, serial number, and ESN (if computer equipment). Also, indicate if equipment is currently in working condition.
To Surplus Property Warehouse: Releasing department checks the box, and the Surplus Property Coordinator completes the information upon receipt of surplus items.
To Another JMU Department: Releasing department checks the box and fills in name of department receiving the equipment. Receiving department completes remaining information. Note: Receiving department should be provided a copy of the EICR form before the original is sent to Fixed Assets.
To a Different Building (within same Dept.): Releasing/Owning department checks the box and indicates different building and room location of equipment.
Disposal: Releasing department checks the appropriate boxes and follows procedures as written in section .720".