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Purchase Order Management

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					                     CALIFORNIA STATE UNIVERSITY, NORHTRIDGE
                          ASSET MANAGEMENT PROCEDURE
FIXED ASSETS MANAGEMENT GUIDELINES

Campuses of the California State University system are required to adhere to
CSU policy pertaining to acquisition, use and disposition of fixed assets. CSU
Executive Order 649 delegates authority to campus presidents to establish and
maintain a system of internal control to safeguard university property.

These procedures provide reasonable standards for compliance with CSU policy
and allow for customization as may be required by individual campuses. In
keeping with its mission, the University provides equipment and furniture
resources to members of the University Community. The equipment and
furniture made available for student, faculty and staff use are the property of the
California State University, Northridge and the State of California, and is provided
for the completion of academic requirements, scholarship, and University
business. Use of these resources is a privilege. Use of University equipment
and furniture for activities other than academic purposes or University business is
not permitted, and the University reserves the right to suspend the use of these
resources for the following reasons:

          a). Illegal activities.
          b). Abuse of resources which significantly reduces the ability of others to
          use these resources.

Adherence to these procedures will facilitate accurate record keeping related to
the acquisition, control, and disposition of property. The combination of accurate
accounting records and strong internal controls must be in place to protect
against and detect the unauthorized use of the university’s Capital and Non-
Capital equipment.

EQUIPMENT

PROPERTY CONTROL DESIGNEES

Campus departments have the primary responsibility for the care, custody,
maintenance, records and control of all property. It shall maintain up-to-date
departmental records and initiate such forms as are necessary to fully inform
Asset Management with respect to the custody, records, control and all
transactions involving said equipment so that Asset Management may properly
carry out its responsibilities.

Property Control Designees, designated by a chair, dean or director have
responsibility for the following:

     1. Promptly reporting any loss, damage or misuse of property or equipment
        to the Asset Management Department.




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                          ASSET MANAGEMENT PROCEDURE
     2. Performing a yearly inventory of Capital equipment in conjunction with the
        Asset Management Department.

     3. In conjunction with the Asset Management department, conducting a
        monitoring cycle of non-capital equipment on a perpetual basis, which will
        have no one cycle last longer than three years. Once the cycle is
        complete a new cycle will begin.

The department chair, dean or director will assign the department property
control designee these tasks in writing.

DEFINITION OF EQUIPMENT

Capital Equipment

Capital equipment is defined as tangible or intangible, non-consumable property
with an acquisition cost of at least $5,000.00. Capital equipment has a normal
useful life of at least one year, is not permanently attached to or incorporated in
university buildings and grounds, and is used to conduct university business.
The cost of equipment includes the purchase price plus all costs to acquire (tax,
shipping and handling), install and prepare equipment for its intended use.

Non-Capital Equipment

Non-Capital equipment is defined as tangible, non-consumable property with an
acquisition cost of at least $2,000.00. Non-Capital equipment has a normal
useful life of at least one year, is not permanently attached to or incorporated in
university buildings and grounds, and is used to conduct university business.
The cost of equipment includes the purchase price plus all cost to acquire (tax,
shipping and handling), install and prepare equipment for its intended use.

ACQUISITION OF CAPITAL AND NON-CAPITAL EQUIPMENT

Delivery to Central Receiving Department

Capital and Non-Capital equipment acquired on a university purchase order,
foundation purchase order or government grant or contract will be barcoded and
recorded before delivery to accepting department. The barcoded data is
uploaded to the asset tracking system. Upon completion of the Equipment
Monthly Activity Summary, Asset Management will forward property records to
the Property Control Designee to verify or provide current information.

Direct Delivery to Department/Pick-up by Department

When Capital or Non-Capital equipment is delivered directly to a department or
the department picks up the equipment directly from the vendor, it is the



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                          ASSET MANAGEMENT PROCEDURE
responsibility of the department to notify Receiving of the delivery. The
Receiving Department will barcode the asset or notifies Asset Management to
barcode the equipment in the department.

Transfer of Capital and Non-Capital Equipment to the University

All requests for transfers of Capital and Non-Capital equipment to the university
must be in writing and received by Asset Management.

Transfer of grant and contract equipment to the State: Upon completion of a
grant or contract where the title to the equipment is to be vested with the State, it
is the responsibility of the University Corporation to prepare a letter of transfer to
notify Asset Management. A Transfer of Location Equipment Form STD 158 is
prepared by Asset Management. The asset being transferred will be added to the
University’s database as an equipment item.

IDENTIFICATION OF UNIVERSITY CAPITAL AND NON-CAPITAL
EQUIPMENT

Identification

All Capital and Non-Capital equipment is barcoded with a unique identification
number and recorded in property inventory records. It remains so identified as
long as it is in the custody, possession or control of the university. Assigned
identification numbers are recorded on all applicable receiving, shipping and
disposal documents, and other records that are related to the property control
system. Such markings and identification are removed or obliterated from the
equipment only when sold, scrapped, or otherwise disposed of. Once an
identification number has been assigned, no change is made during the life of the
item regardless of inter-departmental or inter-campus transfers.

Departmental Responsibilities

Barcoding, tracking, and maintenance of Capital and Non-Capital equipment
records are the responsibility of Asset Management.

Each department is charged with the responsibility for university equipment
assigned to or purchased by their department. Inventories of Capital equipment
will be taken each year as required. Non-Capital equipment will be monitored on
a three-year cycle. Departments are responsible for communicating with Asset
Management when equipment needs barcoding, or when items are lost, stolen,
destroyed or transferred.

Departments, for the purpose of accountability, may request bar coding of certain
types of minor (sensitive) equipment that does not meet the acquisition cost of
$2,000.00 dollars. Departments are instructed to limit the bar coding of this type



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                     CALIFORNIA STATE UNIVERSITY, NORHTRIDGE
                          ASSET MANAGEMENT PROCEDURE
of equipment. However, once it has been determined that minor equipment
under the $2,000.00 threshold is to be bar coded, the item becomes part of their
Non-Capital equipment-monitoring list and departments are held responsible and
must account for and dispose of all such items on their list in accordance with
established procedure regardless of cost.

Warranty information and support documentation is to be maintained by the
originating department. Inventoried equipment will have minimal backup
information maintained in the property records, which may be helpful in pursuing
a warranty. The information maintained in the property records is not the primary
source of warranty information.

Instructional Capital or Non-Capital equipment is that equipment purchased for
use in instructional departments. Reports on instructional equipment
replacement expenditures will be available from property records.

BARCODING (TAGGING)

The application of the barcode number to Capital and Non-Capital equipment is
the responsibility of Asset Management. However, this function may be
delegated to a campus department when deemed appropriate. The identification
number is applied to the actual unit unless its size or nature makes it impractical.
A barcode bearing the identification number should be affixed in the top left
corner or next logical or conspicuous position. Additional identification required
by a department should be applied in a manner that avoids confusion with the
state identification number. Should the identification number be accidentally or
mistakenly obliterated, defaced or removed, the equipment will be barcoded with
a new number. The previous number becomes the secondary number enabling
Asset Management to account for all numbers associated with that item.

LOCATION OF CAPITAL AND NON-CAPITAL EQUIPMENT

The location of each item of Capital and Non-Capital equipment is noted in the
departmental records. Current records as to movement of equipment are
maintained in such a manner that any item of equipment can be located for
inspection or inventory purposes within a reasonable time. The responsible
department will notify Asset Management of any changes in location.

EQUIPMENT REQUIRING SPECIAL HANDLING

Personally Owned Equipment

If a university employee keeps personally owned equipment on campus, it should
be reported to his/her department and identified as the property of the owner.
The university is not responsible for loss or damage to the equipment.




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                          ASSET MANAGEMENT PROCEDURE
Loan Capital and Non-Capital Equipment

Loans of Capital and Non-Capital equipment must be properly documented.

     1. Loans of University Capital and Non-Capital Equipment from One
        Department to Another: If equipment is loaned to another department for
        a short period, a memorandum of the transaction should be filed in the
        lending department.

     2. Loans of University Capital and Non-Capital Equipment to External
        Organizations, Employees, or Other individuals. Any loan of university
        Capital or Non-Capital equipment to an external organization or to an
        individual, including employees, must have prior approval. All loaned
        equipment shall be listed on an Equipment Loan Agreement form, and
        processed via Asset Management. When the equipment is returned, the
        lending department must notify Asset Management.

     3. Inter-Campus Loans of Capital or Non-Capital Equipment. Inter-campus
        loans of equipment require prior approval. Loans of one year or more are
        recorded on inventory records. The borrowing campus on a Transfer of
        Location of Equipment form records inter-campus loans.

INVENTORY OF EQUIPMENT

Physical Inventories of University Equipment

The Capital equipment inventory will take place during January of each year. It is
the responsibility of each department to complete the physical inventory within
the appointed time. Inventory equipment such as scanners will be provided
along with instruction of their use, if necessary. Support documentation such as
inventory listings and discrepancy reports will be generated for each department,
and departments will be responsible for reconciling any and all discrepancies
using the format provided by Asset Management. It is the responsibility of the
owner department to maintain all support documentation for lost, stolen, loaned,
deleted and damaged equipment. If needed, Asset Management will assist in
processing those forms.

Non-Capital equipment will be monitored with a perpetual system with no one
cycle taking longer than three years. It will be the responsibility of each
department to review and update the minor equipment listing using the Asset
Management format provided. Departments must account for all Non-Capital
equipment on their listing. Asset Management will assist each department with
information for completion of forms needed to bring the departments listing up to
date. Each Department must update their department’s list within the required
time. Departments will have one month to reconcile their listing.




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                          ASSET MANAGEMENT PROCEDURE
If there is a change in the chairman/director of a department during the year, the
department should take a physical inventory at that time. Asset Management
may verify the departmental inventory on the basis of statistical sampling. If the
sample shows gross discrepancies, the department will be requested to take a
complete physical inventory.

Results of inventories

University departments will submit to Asset Management their inventory listing
that properly identifies all discrepancies disclosed by physical inventory. The
listing will be signed by the department head indicating that the physical
inventory of all or certain classes of property was completed on a given date, and
that official property records were found to be in agreement with the physical
inventory, except for reported discrepancies. The listing will be furnished with a
minimum of delay at the completion of the physical inventory.

REMOVAL OF EQUIPMENT FROM PROPERTY RECORDS

Survey

In order to remove or delete Capital or Non-Capital equipment items from
property inventory records, a process known, as a “Survey” must be completed.
The following procedures must be taken:

     1. A Surplus Property Survey Request (Form 116) must be prepared and
        submitted to Asset Management. A complete description of the item,
        including the University identification number and serial number, if
        available, should be furnished.

     2. Asset Management will review the written request, prepare a Property
        Survey Report and then forward the completed Property Survey Report to
        the University’s Property Survey Board for review and approval.

     3. Upon approval, Asset Management will remove equipment from
        department equipment inventory records.

The proposed disposal of property or equipment by cannibalizing, junking,
salvaging, selling, donating or trading-in these items, must also be recorded on a
Property Survey Report Form following the above procedures.


Trade-in of Capital or Non-Capital Equipment

Departments must prepare and submit a written request whenever equipment is
being traded in. The request should include a complete description of the
equipment, the vendor, the monetary value offered for the equipment, and



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requisition number. The department should provide a Purchase Order number to
Asset Management when it becomes available.




Lost or Stolen Capital or Non-Capital Equipment

When a determination has been made that Capital or Non-Capital equipment has
been lost or stolen, the individual or department accountable for the equipment
should immediately notify the Campus police. A theft or lost report is completed
and submitted with a Surplus Property Survey Request (Form 116) and a Lost
Property Statement form to Asset Management.

Employees may be charged for any loss or damage to University Capital or Non-
Capital equipment that is attributable to their negligence or unauthorized use.

TRANSFERS AND RELOCATION OF CAPITAL AND NON-CAPITAL
EQUIPMENT

It is the responsibility of the department to notify Asset Management of all
relocations of Capital and Non-Capital equipment items as follows:

Inter-Departmental Transfers

When Capital and Non-Capital equipment is transferred between departments, a
“Equipment/Furniture Move Service Request” form must be completed and
signed by the appropriate dean, director or chair of the department involved in
the transfer of Capital and Non-Capital equipment. This form should then be
forwarded to Asset Management to update the inventory records.

Relocation of Entire Department

When an entire department relocates, the department should conduct a complete
physical inventory of Capital and Non-Capital equipment.

Transfers to State Agencies

When Capital and Non-Capital equipment is transferred between state agencies,
a Surplus Property Survey Request form must be completed and signed by the
appropriate dean, director or chair of the department and sent to Asset
Management. The request is attached to a Transfer of Equipment form prepared
by Asset Management, approved by the Property Survey Board, and signed by
the receiving state agency.

Sale of Capital and Non-Capital Equipment



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                          ASSET MANAGEMENT PROCEDURE


Asset Management, in accordance with university policy, may offer university
equipment for sale. The term “sold equipment” applies to university-owned
equipment sold to external agencies or individuals. It does not apply to
equipment transferred to another department or campus.

Donation of Equipment

Asset Management in accordance with university policy may donate university
equipment. Any non-profit organization may qualify for a donation. The
organization must submit a letter, requesting donation on letterhead to Asset
Management.

All donations of Capital and Non-Capital equipment must be processed through
Asset Management.

Junked or Salvaged for Parts

A Property Survey Report must be prepared whenever it is proposed to dispose
of university owned Capital or Non-Capital equipment by junking or salvaging the
equipment for parts. Departments should follow the procedures outlined above
in the section entitled Removal of Equipment from Property Records (Survey).

CSUN ASSET MANAGEMENT DEPARTMENT’S PROCEDURES FOR
ACCOUNTING FOR UNIVERSITY GIFT DOCUMENTS


                              UNIVERSITY GIFT POLICY
It is the policy of California State University, Northridge that all gifts received by
the university or any of its colleges, departments, or units, be deposited through
the University Development Office with the California State University, Northridge
Foundation. Gifts to the university may be in the form of cash or non-cash items.
Gifts of art must be approved for acceptance by the university’s art collection
commission. Gifts that are accepted with the expectation that they will be sold
require special consideration for IRS purposes.

PURPOSE
To account for and reconcile Capital and Non-Capital equipment that is donated
to California State University, Northridge.


                                          RESPONSIBILTY

Faculty and Staff: All gifts of tangible personal property are transferred to the
university through a deed of gift letter. Because of the tax implications related to
gifts, procedures have been established through the University Foundation to


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                     CALIFORNIA STATE UNIVERSITY, NORHTRIDGE
                          ASSET MANAGEMENT PROCEDURE
assist members of the academic community and donors in properly receiving and
accounting for gifts to the university.

Asset Management: Upon receipt of the deed of gift letter, Asset Management
is responsible for processing the gift in accordance with CSUN gift policy and
procedures.

                                          REQUIREMENTS

Bar-coding Assets: Donated property is bar coded for accounting purposes
when certain conditions are met. Bar-coding means to affix a University bar code
to the asset, and record it in the University property records. The Campus
maintains this accountability until disposition of each asset occurs. Tangible
property must meet the following two requirements in order to meet the bar-
coding requirements for state equipment:

Capital Equipment: Capital Equipment shall be defined as any equipment which has:

          1.        A useful life of one year and,

          2.        Has a value of $5000.00 or more.

This equipment will be bar-coded and recorded in the asset management system
in accordance with Asset Capitalization Criteria and accounted for by a yearly
physical inventory in January.

When the above requirements are not met, the asset will not be recorded as
capitalized property.

Non-Capital Equipment
Non-capital equipment shall be defined as any equipment that has:

          1. A useful life of one year and,

          2. Has a value of $2,000.00 to $4,999.99.

This equipment shall be bar-coded and recorded in the asset management
system and accounted for during the cyclical monitoring cycle.

When the above requirements are not met, the asset will not be recorded as non-
capital property.

Receiving/Bar-coding/Inventory/disposal of Gift Equipment
  1.     A Non-Software Gift in Kind Transmittal Form is completed by the
         recipient (department) with detailed information regarding the donation.
         The Transmittal form along with the Deed of Gift letter and any other



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                          ASSET MANAGEMENT PROCEDURE
               supporting documentation is then sent to Foundation to be processed.
               Copies of the gift documents are then sent to Asset Management.

     2.        The recipient (department) receives the equipment donation directly
               from the donor for the University.

     3.        Asset Management determines if the donation is equipment to be bar-
               coded and at this time makes arrangements with the department to bar
               code.

     4.        If the donation is not to be bar coded, the gift document is then
               returned to the foundation department, marked “NO TAG”.

     5.        Upon bar coding, Asset Management enters the data into the asset
               tracking system with description, serial number, gift document number,
               location, value, sam code, source, instructional, class codes, name of
               donor and date donated. Copies of the gift documents, marked
               “TAGGED” are sent to Foundation.

     6.        Donated equipment that is bar-coded is reconciled to the general
               ledger during the monthly reconciliation process.

     7.        Gift equipment is inventoried in accordance with CSUN standard
               inventory procedures.

     8.        Gift equipment is disposed of in accordance with CSUN standard
               disposal procedures

Monthly Reconciliation

The Reconciliation is designed to provide an accurate account of monthly
expenditures of capitalized and non-capitalized equipment purchases, donations,
lease purchases, deletions and surveys in accordance with General Accepted
Accounting Principles (GAAP). The monthly Reconciliation must maintain an
accurate balance between the General Ledger and the Property Master. To
insure that all assets are properly accounted and valued, if the Asset
Management Equipment Expenditure Report does not reflect a proper purchase
order number or asset description, a listing is sent to Accounts Payable with
voucher information to obtain copies of the invoices to determined whether a bar-
code should be affixed and that we have applied the correct payment to the
asset.

Reports for fixed asset additions; deletions and changes are provided monthly to
the departments in which they occur. Supporting documentation for additions,




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                     CALIFORNIA STATE UNIVERSITY, NORHTRIDGE
                          ASSET MANAGEMENT PROCEDURE
deletions, and changes is maintained in Asset Management and made available
to the Accounting Department as needed for reconciliation and documentation
purposes.

Annual reporting requirements

     Annual reports include:

     Instructional Equipment Report: Asset Management maintains an
     instructional equipment inventory for system budget development and state
     reporting requirements.

     Capital Inventory Report: Asset Management maintains a beginning balance,
     ending balance and all worksheets pertaining to the annual capital inventory.

The university has a vested interest for ensuring accurate property records. CSU
budget allocations for Instructional Replacement equipment are based, in part,
on existing equipment values. Property that is not properly accounted for,
impacts negatively on the campus allocation.




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Description: Purchase Order Management document sample