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 FAACS Procedures Manual and the CAPP Manual. 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.
CAPP Manual - Commonwealth Accounting Policies and Procedures, developed by the State Comptroller
DPO - Departmental Purchase Order
EICR - Equipment Inventory Change Request form
ETF - Equipment Trust Fund
Equipment - Agency property of any kind, which meets the following criteria:Is complete in itself; does not lose its identity or become a component of the building where it resides and is of a durable nature with a useful life of two years or more
FAACS - Fixed Asset Accounting And Control System, the statewide property management system in which University fixed asset records are maintained
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, museum and other collections, and certain internal-use software
Plant Fund Accounting - An organizational unit within the Accounting Services area of the Finance Division which is responsible for accounting and financial reporting of fixed assets, including related debt, real estate and equipment operating leases, titles, deeds, easements, and management of surplus property
PO - Purchase Order
SCHEV - State Council of Higher Education for Virginia
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 Plant Fund Accounting 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 FAACS. Acquisitions costing between $2,000.00 and $4,999.00 are considered controllable and recorded in FAACS to provide accountability and to safeguard the asset.
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 Asset" report generated from the University's Financial Information System, the fixed asset accountant identifies equipment purchases for decaling. The report provides a list of all accounts payable vouchers recorded in equipment accounts (2xxxxx) regardless of cost. The fixed asset accountant selects expenditure transactions that are $2,000.00 or greater, Equipment Trust Fund purchases (all regardless of cost), Local/Agency fund purchases ($500.00 or greater) or partial payments. Actual vouchers are then pulled and reviewed in detail. Equipment purchases are assigned 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||$2,000 or Greater||Decals Prefixed with "1"||Black & White Property of JMU|
|Capital Projects||7XXXXX||$2,000 or Greater||Decals Prefixed with "1"||Black & White Property of JMU|
|Local Funds||8XXXXX||$500 or Greater||Decals Prefixed with "1"||Black & White Property of JMU|
|100062||All Regardless Of Cost||Decals Prefixed with "8"||Red & White Property of JMU Equipment Trust|
|Grants &Contracts||5XXXXX||$2,000 or Greater||Decals Prefixed with "9"||Red & White Property of JMU Restricted|
Acquisitions of land, buildings, and improvements other than buildings are identified through the capital project process. Plant Fund Accounting 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 departments through the physical inventory process. Each department has an obligation to notify Plant Fund Accounting if they have untagged equipment with a value of $2,000.00 or more.
During the decaling process, data such as serial number, model number, and location (building & room) is gathered to complete the fixed asset record. This information is not typically found on the supporting purchasing documentation.
Following the decaling of equipment, transactions are entered into the statewide FAACS system to record university fixed assets and related data. Edits are verified to ensure the accuracy and integrity of the data that was entered. New equipment is also recorded in an ACCESS database. This is maintained to provide timely information for customer inquiries and used for financial statement preparation.
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 Plant Fund Accounting 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 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.
The FAACS generated FAC316 report "Inventory by Responsible Position" is used to conduct the physical inventory. This report provides a detailed list, by location, of equipment for which a department is responsible. Detailed instructions for updating the FAC 316 report accompany the physical inventory request from Plant Fund Accounting.
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. Please Note: Grant and Trust Fund (ETF) equipment require pre-approval from the Inventory Specialist, ext.83748 before they are eligible surplus items.
• Submit a work order to the Facilities Management Work Order Control Center 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.
• Fill out an EICR form. Note: Please record JMU decal #’s & ESN #’s on the form
• Contact PC Services at extension 83159 to schedule pick up of the surplus computer equipment.
• Keep form with the equipment for pick up.
• Follow distribution instructions at the bottom of the EICR form to ensure that JMU decal #’s are removed from your inventory.
• "Received By" signature is required on original and forwarded to Plant Fund Accounting by Releasing department.
• Please Note: Grant/Trust Fund (ETF) computer equipment require pre-approval from Plant Fund Accounting before they are eligible surplus items.
• Transportation Manager of Facilities Management issues a memo to the Manager of Plant Fund Accounting including the following information for each vehicle:
• Vehicle description (make, model, & capacity)
• Vehicle number & JMU Decal Number
• VIN/Serial Number & Actual Mileage
• Detailed explanation of vehicle’s condition required
• Surplus Property Coordinator schedules an appointment with the Transportation Manager to have the vehicle delivered to the Surplus Property designated area behind E&M warehouse.
• The following should be completed by the Motor Pool staff prior to any vehicle’s transfer to Surplus Property:
• Remove toolboxes, accessories, etc. to be retained
• Spray paint over "James Madison University" Logo
• Place appropriate tags on vehicle if needed (e.g., lockout, danger, etc.)
• Turn surplus vehicle keys over to Surplus Property when the vehicle is delivered to the designated area behind the E&M warehouse.
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.
• Schedule an appointment to visit the warehouse.
• Select items suitable for your department. The Surplus Property Coordinator will tag selected items and complete a "no" cost transfer form for your department. Please note: Items with JMU decals will be added to your inventory.
• Submit a work order to the Facilities Management Work order Control Center 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 the state surplus reutilization web site. Surplus Property, as the releasing party, completes an Inter-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 or other state approved competitive methods.
• Scrapped or recycled with State approval
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 Plant Fund Accounting regarding the transfer or disposal of property.
Complete original form and make two copies.
.1014 Where to Send Completed Form
Send original completed form to the Office of Plant Fund Accounting, MSC 5704, one copy to the Receiving department, Fixed Assets Coordinator, 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.
Authorized By: The department head or approving authority’s signature.
Prepared By: The fixed assets coordinator’s signature.
Extension: The telephone number for the fixed assets coordinator.
Date: The date the department completes the form.
JMU Decal Number: Number from the 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, serial number, model number, and ESN (if computer equipment). Also, indicate if equipment is currently in working condition.
To Surplus Property: 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.
To a Different Building: Releasing/Owning department checks the box and indicates different building and room location of equipment.
Disposal: Releasing department checks the appropriate box and follows procedures as written in section .700".