System Management - Equipment and Supplies
C.E.S.P. 10-9: Maintaining Equipment - Inventory
Date Revised: 3-13-2014
A capital asset is defined as real, personal or intangible property that has a value equal to or greater than the capitalization threshold (detailed below) and has an estimated life of greater than one year.
I. Capitalization Threshold
Effective July 1, 2012, the Cooperative Extension Service has adopted equipment capitalization thresholds in accordance with the levels adopted by the State of Arkansas Department of Finance and Administration as of July 1, 2011. The capitalization threshold for equipment is $5,000.00. These items will be tagged with a Cooperative Extension Service bar coded tag and will be placed into permanent inventory.
Assets that cost $2,500.00 - $4,999.99 and that are easily susceptible to pilferage will also be tagged with a bar code and inventoried by Financial Services. These items are categorized as Low Value Equipment and include such examples as certain farm equipment items and high tech computer equipment.
Additionally, some assets that cost $500 - $2,499.99 are categorized as Low Value-High Risk Equipment. These assets include laptop computers, guns, camera equipment, video equipment, tablets (e.g. I-Pads, Kindle Fire, etc.), and any others that are susceptible to loss or theft. The financial manager for each unit/department is responsible for maintaining an accurate inventory of these assets.
Effective July 1, 2012, standard capitalization threshold for capitalizing assets for each major class of assets are as follows:
|Equipment – Low Value||$2,500 – 4,999.99|
|Equipment – Low Value High Risk||$500 – 2,499.99|
II. Responsibility of Financial Managers style="font-size: 12px; line-height: 1.333em;">
- Identify and assign all property under their supervision.
- Maintain an accurate list of appropriate assets (Low Value/High Risk) that includes
the following information:
- Item description
- Identifying numbers (serial number, model number, etc.)
- Purchase date
- Name of custodian
- Date of disposition
- Method of disposition
- Conduct yearly physical inventory of all property under their supervision and take appropriate steps to locate, document, and notify Financial Services when items are identified as missing.
- Assure that property is effectively utilized and maintained. Ensure that property is used for Extension official business only.
- Retrieve property upon termination or reassignment of employee.
- Complete Form M.I.S.C. - 374, Property Transfer Form, when an item is moved to another location.
- Complete Form M.I.S.C. – 374D, Property Disposal Form, when an item is outdated or is no longer needed.
- Safeguard property against theft, damage, and misuse. Report all lost or stolen property to the Financial Services and to local law enforcement authorities immediately. Obtain a copy of the police report.
III. Categories of Equipment
Inventory Property - Tangible property with a unit cost of $5,000 or more, with a normal usage life of one year or more, and does not lose its identity or become a component part of other equipment. This type property must be tagged with a bar code inventory tag. Any other items that are susceptible to loss or theft will be tagged also.
Low Value - Assets costing $2,500 - $4,999.99 that are easily susceptible to pilferage. These items include laptop computers, guns, camera equipment, video equipment, printers, tools, cell phones, handheld radios, binoculars, and any others that are easily susceptible to loss or theft.
Low Value-High Risk - Assets costing less than $2,500 that are easily susceptible to pilferage. These items include laptop computers, guns, camera equipment, video equipment, printers, tools, cell phones, handheld radios, binoculars, and any others that are easily susceptible to loss or theft.
Federal Excess Property - Property obtained through the Federal Excess Property Program. This property must be tagged with Federal property tags. This equipment is not tracked in the C.E.S. accounting system.
Gifts of Property from Agricultural Development Council/ U of A Foundation, Inc. - Tangible property with a unit cost of $5,000 or more, with a normal usage life of one year or more, and does not lose its identity or becomes a component part of other equipment. This type property must be reported to Extension and tagged with a bar code inventory tag.
Extension Excess/Unserviceable Property - Property that is excess to the needs of the unit or property that is beyond economical repair and not worth the cost of storage. All equipment items determined to be excess, unserviceable, or broken and non-repairable MUST be turned into the state office to be reassigned or sent to Marketing and Redistribution.
IV. Transfer of equipment from one location to another
Any equipment bearing an inventory bar code, transferred from one location to another will require the completion of a M.I.S.C. - 374, Property Transfer Form, available on computer template. The completed form will be sent to Financial Services. The piece of equipment should be removed from the previous units' inventory and added to the units' inventory where it will now reside. This includes office equipment moved from one office to another within the state office, county office equipment moved from one county to another or equipment moved from the state office to the agriculture center in Lonoke or equipment moved to or from a Research and Extension Center.
A written justification must be submitted and approved by administration prior to taking equipment, i.e. a computer or other equipment, home for use or away from the office for a particular use. Employees must also complete form M.I.S.C.-373 with approval signatures and submit completed form to Financial Services office. Upon termination, reassignment, or retirement of an employee, it is imperative to retrieve the item that is off of extension property.
V. Disposal of an asset
A M.I.S.C. – 374D is used when an item is outdated or is no longer needed. You must fill out this form for every item whether it has a CES tag or not. The form needs to be filled out completely, with signatures, description of the item, CES tag number (if available), and serial number. It is important that this form is attached to the item when it is taken to the warehouse for disposal. If you need your item picked up please make arrangements with someone at the warehouse.
VI. Missing/Lost, destroyed, or Stolen items
A M.I.S.C. - 376 is used when an item is missing/lost, cannibalized/discarded, stolen, or destroyed. This form needs to be completed for all equipment whether it has a CES tag or not. The form is required to have two signatures, the county staff chair or department manager and also the appropriate supervisor. Remarks need to be as detailed as possible for what happened to missing/lost, cannibalized/discarded, or destroyed items. An official police report is required when an item is stolen. Once this form is completed the original form needs to be sent to Financial Services.
VII. Physical Inventories of Assets
Printouts or electronic copies of inventory lists with assets that are tagged/bar-coded and cost $2,500 and above will be sent to department directors, district directors, and staff chairs annually so that a physical inventory can be completed in each county office, department in the L.R.S.O., and Lonoke and Ag Experiment Stations.
Department directors, staff chairs, and district directors will sign off on the inventory sheets certifying their responsibility and accountability for equipment and/or inventory assigned to them. District directors will confirm inventory via spot checks/audits during county visits.
Financial Managers for each county, unit and department are also responsible for maintaining an inventory list of assets that cost $500 - $2,499.99. These assets include laptop computers, guns, camera equipment, video equipment, tablets, and any other items that are susceptible to loss or theft. District Directors may confirm inventory via spot checks/audits during county visits. Financial Services personnel may confirm inventory via spot checks/audits for units/departments located at the L.R.S.O. and other sites.