Capital Movable Asset Physical Inventories, Tagging and Location Changes

Scope

All Indiana University units and employees.

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Policy Statement

“A physical inventory of equipment shall be taken, and the results reconciled with the equipment records at least once every two years. Any differences between quantities determined by the physical inspection and those shown in the accounting records must be investigated to determine the causes of the difference.” (Reference: U.S. Office of Management and Budget Uniform Guidance, Uniform Requirements for Grants and Other Agreements with Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations).

All movable capital assets located in university owned or leased buildings, purchased through the university financial system, or used in university research projects is deemed to be in the custody of the university, regardless of who ultimately retains title to this equipment.

All movable capital assets must have a university yellow identifying tag affixed to it within thirty (30) days of receipt. Federally owned equipment will have affixed to it a university tag and a government ownership tag.

Whenever a unit changes the location of a movable capital asset, the location must be updated in the Capital Asset Management System within 30 days of the change.

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Reason for Policy

Physical inventories and tagging are completed to secure university capital assets, to verify location for compliance with OMB Uniform Guidance, and to assist units with effective management of capital equipment.

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Procedures

Each unit is responsible for movable capital asset physical inventories, tagging, and changing locations for those assets capitalized under their organization code in the Kuali Financial System. Inventory Trakkers are available for scanning inventories. The Campus Capital Asset Office will train a unit's inventory representative on the use of the Trakkers. When the asset is scanned, the last inventory date in the Capital Asset Management System will be updated. Any asset unable to be scanned must be updated manually. If the asset is moved between inventories, the unit will update the asset location in the capital asset system within 30 days of the asset being moved. Movable capital asset tags can be purchased from the University Capital Asset Office.

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Definitions

Capital Assets: An acquisition value of at least $5,000 and a useful life expectancy of one year or more.

Federally Owned Equipment: Assets that are purchased by a contract and grant account and of which the federal government or agency will retain ownership upon the completion of the grant or contract.

Trakker: A handheld data collection terminal used to scan the IU tag number affixed to equipment.

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Additional Contacts

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History

This policy was adopted on July 1, 1992, and updated on August 31, 2021.

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