Asset Management Training

Asset Management Training The purpose of Asset Management training is to provide instruction to Property Custodians, Business Managers, Department Heads, and other individuals handling Asset Management on roles and responsibilities, policies and procedures for inventory, tagging assets, transfers, disposals, and contact information.

Asset Management Asset Management Functions Governmental Role Inventory Control Procedures Transfer of Equipment Contact Information

Asset Management Functions The function of Asset Management is to tag newly acquired moveable equipment, perform a physical inventory of taggable equipment each year, maintain accurate accounting records of capital and taggable items, and help manage the removal of Surplus and Scrap. Serve as a liaison between the University, LPAA (Louisiana Property Assistance Agency), State, Federal and Private agencies regarding Inventory. Ensure University compliance with University, System, State and Federal property guidelines.

Governmental Role LSUHSC-NO is required by LA State Law to accurately account for all inventory. Audits are conducted by various agencies to determine compliance with University, State, and Federal rules and regulations. Non-compliance with University, State, and Federal rules and regulations may subject the university to fines and the withholding of governmental funding.

Inventory Control - Requirements Louisiana Revised Statute 39:324 and 39:325 require entities to conduct an annual inventory of movable property and report any unlocated property to the Louisiana Property Assistance Agency (LPAA). Louisiana Administrative Code Title 34 Part VII Section 313 states, in part, that efforts must be made to locate all moveable property for which there are no explanations available for their disappearance. Each department and/or division is required to have a property custodian that will serve as a liaison or contact person to Asset Management.

Inventory Control – Property Custodians LSUHSC-NO Asset Management requires departmental assistance by utilizing Departmental Property Custodians. Property Custodians are responsible for: Locating all inventories and taggable equipment by conducting a thorough search for items, including those not located in the annual inventory Contacting Asset Management when an asset tag is worn or missing Answering questions relating to departmental equipment Reporting changes in moveable equipment locations or custodian names Reporting stolen items to University Police Ensuring that all equipment is used for University purposes Receiving and processing Asset Management forms Coordinating the disposal of departmental equipment.

Annual Inventories - Procedures LSU Health Sciences Center New Orleans (LSUHSC-NO) is required by LPAA and the federal government to perform a physical inventory of all taggable assets each year. Asset Management conducts inventories building-by-building using bar code scanners. Asset Management will replace worn or missing equipment tags Upon completion of inventories, departments receive a “Missing” report of property that was not found.

Annual Inventories – Procedures Cont. Departmental Action Items Departmental personnel and/or property custodians should complete the “Missing” reports. Departments should respond within the time limit specified by Asset Management. Property custodians are responsible for: Physically locating assets that are “missing” and confirm with Asset Management whether asset(s) have been found. Correcting any other discrepancies for the asset(s) on the “Missing” report.

Asset Acquisition - Procedures Items of Property to be Inventoried – L.A.C. Title 34 Part VII Section 307A. – All items of moveable property having an “original” acquisition cost, when first purchased by the state of Louisiana, of $1,000 or more, all gifts and other property having a fair market value of $1,000 or more, and all weapons and electronic media assets, regardless of cost, with the exception of items specifically excluded in Section 307E, must be placed on statewide inventory system. The University’s capitilization policy includes all moveable property items with an acquisition cost of $5,000 or more and an estimated useful life greater than one year. Assets that are valued at a cost less than $5,000 will need to be coded differently than capital equipment (moveable equipment $5,000 & above).

Asset Acquisition – Procedures Cont. How this impacts your purchases - If an item is valued at less than $5,000 this is considered a taggable asset/supply and should be coded using the range of “540100 through 540126”. If an item is valued at $5,000 or more this is considered a capital asset and must be coded using the range of “570000 through 579699”.

Asset Acquisition – Procedures Cont. The below is a visual representation of the coding that needs to be adhered to when completing purchase documentation and ensuring correct coding of assets. $1,000 $5,000 Non Taggable Supplies Taggable Assets/ Supplies Taggable Capital Assets 540100 - 540126 570000 - 579699

Tagging Assets - Procedures All moveable assets must be tagged within 60 days from the date of receipt. The property custodian or designee should call Asset Management upon receipt of equipment that meets the criteria of a taggable asset. An Inventory Specialist will come to the department and tag the equipment.

Scrap Equipment - Procedures Contact Safety department if toxic materials are present. These will need to be removed (e.g. radioactive material, chemical agents). Contact IT department if scrapping electronic media related equipment i.e. hard drives, software. All data must be erased (sanitized) prior to inspection by Asset Management. Following sanitization, a certificate of data sanitization should be completed and a sanitization sticker placed on equipment. Trash, debris, and the like must be removed from furniture, refrigerators, etc.

Scrap Equipment – Procedures Cont. Send a request via email to NO Inventory in Asset Management with the following information: Tag number aka “Asset number”, if applicable and available Brief description of the equipment Quantity, location Option of Completing a “Notice of Change in Moveable Equipment” form in lieu of an email request

Surplus Equipment – Procedures Ensure that the selected equipment is of no use to another department. Contact Safety department if toxic materials are present. These will need to be removed (e.g. radioactive material, chemical agents.) Contact IT department if sending electronic media related equipment to surplus (e.g. hard drives, software). All data must be erased (sanitized) prior to inspection by Asset Management. Following sanitization, a certificate of data sanitization should be completed and a sanitization sticker placed on equipment. Trash, debris, and the like must be removed from furniture, refrigerators, etc.

Surplus Equipment – Procedures Cont. Any idle or surplus equipment not being used by the Department must be reported to Asset Management. Once it’s determined that an item should indeed be sent to surplus and the above action items have been completed (if applicable) the below steps follow. Send a request via email to NO Inventory in Asset Management with the following: Tag number aka “Asset number” Brief description of the equipment. Quantity, location Option of Completing a “Notice of Change in Moveable Equipment” form in lieu of an email request.

Equipment Disposal – Asset Management - Procedures Upon receipt of Scrap and/or Surplus requests, Asset Management will perform the following: Inspect items for safety, condition, and reference information. A sticker for scrap or surplus may be placed on the item(s). Initiate LPAA paperwork transfer. Direct the Department to create a work order for Physical Plant and/or contact an outside contractor to coordinate the transfer of items from the department to an interim pick-up area and/or disposal. Final pick-up occurs upon approval from LPAA.

Donated Assets - Procedures Definition All equipment donated to LSU Health Sciences Center New Orleans (LSUHSC-NO) must be recorded for financial statement purposes. If the value of an item is $1,000 or greater then it is tagged and recorded on the Movable Property Inventory. Action Items Contact Asset Management immediately upon receipt. Notification should include the following via email or memo: Verbiage documenting the receipt and acceptance of the donation. A valuation review of the donated equipment must be attached. Applicable portions completed by the donor of the form Certification of Donation or Contribution of Property of a Sophisticated & Technological Nature.

Donated Assets – Procedures Cont. Methods of Valuation (case by case) the net value of the equipment as stated by the donor (for new equipment). a quotation obtained by Purchasing (for donated equipment commonly sold through wholesalers). an estimate by the director of Purchasing based upon comparable items. Upon receipt of notification, Asset Management will set up an appointment to affix a LSUHSC-NO tag to the donated equipment. PeopleSoft database will be updated to include the donated asset accordingly.

Stolen Equipment - Procedures Department personnel must report stolen equipment immediately to University Police. A police report must be completed by the Department. The Legislative Auditor, Director of Internal Audit, Asset Management Manager, Director of Compliance, and the District Attorney should be notified by University Police of any apparent theft of public funds or assets.

Off-campus Equipment $1,000 and greater LSUHSC-NO equipment $1,000 and greater may be taken and used off-campus if used for permissible reasons and properly authorized. Receipt and return of equipment should be sent to the Property Manager in the Asset Management Department. Off-Campus equipment should be returned to the University prior to an individual’s separation or upon notice. Violation of this policy constitutes misuse of University equipment, materials, services and other property and may result in University disciplinary action/and or criminal charges.

Off-campus Non-Taggable Property less than $1,000 LSUHSC-NO property less than $1,000 may be taken and used off-campus if used for permissible reasons and properly authorized. Receipts and return of property should be maintained by the Department. Off-Campus property should be returned to the University prior to an individual’s separation or upon notice. Violation of this policy constitutes misuse of University equipment, materials, services and other property and may result in University disciplinary action/and or criminal charges.

Transfer of Equipment Intradepartmental Transfers Grant Transfers Other State Agency Transfers

Intradepartmental Transfers Definition Transfer of equipment within a department from one departmental member to another e.g. room to room. Action Items Send a notification to Asset Management via email Include new custodian, building and room number. Complete the “Notice of Change in Moveable Equipment” form in lieu of email.

Departmental Transfers Definition Transfer of equipment from one department to another Action Items Send an email to Asset Management indicating the following : Tag number, description New department custodian, room number, and building. Acceptance emails must be received from receiving department. Complete the “Notice of Change in Moveable Equipment” form in lieu of email.

Intradepartmental & Departmental Transfers Once emails/forms have been received by Asset Management, the following are executed: The requests are validated. Upon validation, the new custodial information is updated in PeopleSoft. Arrangements are made with Physical Plant or an outside contractor for transport when applicable. The Department is responsible for completing a work order to Physical Plant on Intradepartmental or Departmental Transfers.

Grant Transfers Definition Equipment that is—either sponsor-owned or funded—being transferred from one University or entity to another University or entity. Action Items Sponsored Projects should be notified immediately. Asset Management must be notified thereafter. A relinquishing statement must be sent to Asset Management accompanied by the Grant ID number. Request will not be processed without this information. If a grant is not continuous, the equipment is the property of LSU Health Sciences Center New Orleans.

Other State Agency Transfers Definition Equipment being transferred outside of the University to an agency within the LSU system (e.g. Hospital). Action Items Send notification via email or complete a “Notice to Change Moveable Equipment” form.

Grant & Other State Agency Transfers LPAA is contacted for approval by Asset Management. Upon approval, arrangements are made for transport. Shipping and Freight costs may apply. The requestor will receive verification via Asset Management on approval status by LPAA. The transfer cannot take place until approval from LPAA is given. Assets are retired from the PeopleSoft database upon approval from LPAA.

Asset Management Contacts Holly Roberts, Assistant Director Accounting Services (504) 568-3061 hkrobe@lsuhsc.edu Chanel Baiamonte, Manager (504) 568-4841 cbaia@lsuhsc.edu Joe St. Clair Administrative Coordinator III (504) 568-6280 jstcla@lsuhsc.edu Crystal Nelson Administrative Coordinator IV (504) 568-6281 cnelso@lsuhsc.edu Rashad Ketchens Administrative Coordinator IV (504) 568-8651

Asset Management Training THE END

Asset Management Review Questions 1) All moveable assets must be tagged within _____ days from the date of receipt. 90 60 30 120 Answer: (b) – Louisiana Administrative Code Title 34 Part VII Section 307 states that items must be tagged within 60 calendar days after receipt.

Asset Management Review Questions – cont. 2) Property custodians are responsible for locating all inventories and taggable equipment by conducting a thorough search for items, including those not located on the annual inventory. True False Answer: (a) – True. Departments are required to have a property custodian that will serve as a record keeper for Department equipment and a contact for Asset Management. Property custodian responsibilities include locating all inventories and taggable equipment.

Asset Management Review Questions – Cont. 3) If an item is valued at $1,000 to $4,999 and/or is electronic media this is considered a _____________ and should be coded using the range of “540100 through 540126”. capital asset taggable asset/supply Answer: (b) – A taggable asset/supply is defined as a taggable moveable item that is valued below $5,000 but higher than $1,000 and should be coded differently than a capital asset.

Asset Management Review Questions – Cont. 4) Asset Management is responsible for removing toxic materials, trash, debris, and sensitive data on items to be scrapped or surplused. True False Answer: (b) – The Department property custodian is responsible for removing or coordinating the removal of hazardous substances, trash, sensitive information, etc.

Asset Management Review Questions – Cont. 5) What State Agency approval is required for the final disposal, removal, and/or transfer of equipment? Louisiana State Legislature Department of Health and Hospitals LPAA – Louisiana Property Assistance Agency None of the above Answer: (c) – LPAA must approve the disposal, removal or transfer of all equipment at LSU Health Science Center.

Asset Management Review Questions – Cont. 6) Donated equipment to LSU Health Sciences Center New Orleans (LSUHSC-NO) must be recorded for financial statement purposes, and placed on the Movable Property Inventory if value is $1,000 or greater. True False Answer: (a) – All equipment donated to LSU Health Science Center must be recorded for financial statement purposes. Donated equipment is tagged if it is $1,000 or greater.

Asset Management Review Questions – Cont. 7) For on-going grants being transferred to another University or entity, what documentation is needed by Asset Management to complete the transfer and get approval by LPAA? Per 3 Relinquishing statement Notice to Change Moveable Equipment form All of the above Answer: (b) – A relinquishing statement approved by Sponsored Projects including the Grand ID number(s) is required to request approval from LPAA to transfer the equipment.

Asset Management Review Questions – Cont. 8) An employee of LSU Health Science Center terminating employment to work for another University or entity is allowed to transfer equipment from a grant that has been closed. True False Answer: (b) – Louisiana Administrative Code Title 34 Part VII S505 B2 states that, at the conclusion of a grant, the title for equipment reverts to the state. When the equipment is no longer any use to the Health Sciences Center, it is sent to LPAA for either transfer to another state agency as needed or sent to public auction.

Asset Management Review Questions – Cont. 9) The initial inventory conducted by Asset Management is performed using ______________. bar code scanners a list of taggable equipment by building both a and b neither a or b Answer: (a) – During the initial inventory of taggable equipment Asset Management uses bar code scanners to go room by room, building by building. After completion of the initial Inventory, Asset Management will then do “go-backs” to determine what equipment was missed using a list of missing equipment by building.

Asset Management Review Questions – Cont. 10) Violation of Off-Campus Equipment and Property policies may result in University disciplinary action and/or criminal charges True False Answer: (a) – Title 34, Part VII, Chapter 5, Section 305 of the Louisiana Administrative Code states that employees to whom property is entrusted shall be liable for the payment of damages whenever his wrongful or grossly negligent act or omission causes any loss, theft disappearance, damage to or destruction of property of his agency for which his is responsible.