Business and Finance Office

Business Office Inventory Article

CURRENT CAPITALIZATION POLICY:

Equipment with a purchase price of at least $500 or over and an estimated useful life of seven (7) years should be recorded on the Equipment Inventory System.

All equipment leases should be reviewed to determine if any lease should be capitalized. Once calculations of the capitalized cost have been determined, the description and cost should be added to the Equipment Inventory System.

Gifts of equipment that would normally be capitalized if purchased or constructed by the University should be capitalized at the fair market value at the time of the gift.

Regardless of how equipment is obtained, each department is responsible for ensuring that the equipment is inventoried.

STATE REQUIREMENTS:

Each state agency is required by act of the Oklahoma Legislature to maintain a current inventory of all its moveable equipment. Items must be marked for clear identification as property of the State of Oklahoma and for record maintenance. The responsibility and accountability of all moveable equipment purchased by or assigned to an account is charged to the account sponsor or department. In order for Cameron University to comply with the Legislature's request, each department chair, dean, or director responsible for the equipments will be requested each March to verify their inventory records. The department chair, dean, or director should verify and correct the inventory listing and submit all changes/updates to the Business Office Inventory Section.

MONTHLY BUSINESS OFFICE PROCEDURES:

Steps in preparation of monthly inventory listing:

1. Information is pulled from the system by equipment object code report.

    

2. Claims and invoices are pulled to verify the department charged, content of claim, and the dollar value of each equipment.

    

3. List the claims on the new equipment inventory data sheets (items $500 or more only).

    

4. Send a copy of listing to department for completion (tag no., building, and room no.).

After equipment has been placed on the inventory system, it should not be transported from building to building or from department to department without reporting such activity to the Business Office.

SUGGESTED PROCEDURE FOR DEPARTMENTS:

When an invoice is received in the Business Office, it is forwarded to the department chair/director for acknowledgment that the merchandise has been received. If there is an item of equipment on the invoice, before signing and sending the invoice back to the Business Office for payment, an ^File("I4.wpd"); "Equipment Inventory Addition Request" form (WordPerfect File) should be filled out and attached to your invoice. The Addition Request form will proceed through the payment process with the invoice. When the claims are viewed for the monthly listing, the Addition Request form will be pulled from the invoice and the information will be used. All the information needed will be on the Addition Request form and Step 4 of the monthly procedures will not be necessary.

TRANSFER OF EQUIPMENT:

When an equipment is transferred from one department to another, that particular equipment should be removed from the sending department's inventory records and transferred to the receiving department. This can be done by completing an "Interdepartmental Equipment Inventory Transfer Request" form. Both chairs/directors of the sending and receiving departments must sign the form. If the transfer can be accomplished between departments, send the completed "Interdepartmental Equipment Inventory Transfer Request" form to the Business Office. However, if the equipment needs to be moved by the Physical Facility personnel, then a ^File("M1.wpd"); "Maintenance Work Order" form (WordPerfect file) must also be filled out. Send both "Transfer Request" form and the "Maintenance Work Order"form to Physical Facilities, NOT the Business Office. After completion of the transfer, Physical Facilities will send a copy of the "Interdepartmental Equipment Inventory Transfer Request" form to the Business Office.

DISPOSITION OF SURPLUS/OBSOLETE EQUIPMENT:

When the department chair/dean/director considered an equipment as worn out and obsolete, there are several ways to dispose the equipment. Disposal of worn out and obsolete equipment can be accomplished by the following methods:

1. Trade-in or exchange the old equipment to cover part of the replacement cost of a new equipment.

    

2. Transfer equipment to other State agencies or educational institutions.

    

3. Sell directly to the public through auction.

(Method #2 and #3 are administered by Physical Facilities)

Worn-out and obsolete equipment can be deleted from the department's inventory list by completing a ^File("I5.wpd"); "Department Equipment Inventory Deletion Request" form (WordPerfect file). The Deletion Request form must be signed by the department chair and list the reason for the deletion. Send the completed "Department Equipment Inventory Deletion Request" form to the Business Office if disposal of equipment can be accomplished by the department. However, if the equipment needs to be moved by the Physical Facility personnel, then a ^File("M1.wpd"); "Maintenance Work Order" form (WordPerfect file) must also be filled out. Send both "Deletion Request" form and the "Maintenance Work Order" form to Physical Facilities, NOT the Business Office.

If you have any questions, contact Mely Lim at (580) 581-2247 or send an e-mail at teodom@cameron.edu.

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