Equipment Management Training Presented by Fiscal Services December 2014

Equipment Management Overview Why do we have to track equipment? Administrative Policy 2104: Inventory Control of Office and Educational Equipment and Furniture. Administrative Policy

Equipment Life Cycle 3 Purchasing Equipment Tagging Equipment Managing Equipment

Equipment Management Overview Type of EquipmentAbbreviationDollar Threshold Included in Inventory Process? General EquipmentGEN$5000Yes LaptopsLTP$1000Yes Equipment Trust Fund ETF$500Yes “Not Fixed Asset”NFAUnder thresholdsNo 4 Which equipment needs to be tracked? *All equipment should be handled using the same equipment tracking guidelines, however, only tagged equipment over the correlating dollar thresholds will be tracked through the inventory process.

Equipment Management Overview What is ETF Equipment ? State appropriated funding through sales of bonds. Most departments use this money for new computers through the ETF “obsolesence” program administered by the Patriot Computers Store. Some specially funded departments (research or IT-related) also use this funding to purchase new equipment other than computers. 5

Equipment Management Overview 6 Review Inventory (Nov – Dec) Physical Inventory (Jan – Mar) Inventory Round Reporting (Mar – June) Regular Management (June – Nov) Equipment Management Calendar

Review Inventory - Overview 7 Review Inventory (Nov – Dec) Physical Inventory (Jan – Mar) Inventory Round Reporting (Mar – June) Regular Management (June – Nov)

Review Inventory - Overview November thru December Attend Annual Equipment Inventory Training! Utilize Home Loan Report for quick inventory resolution. Check Building Schedule for an idea of when Fiscal Services will be scanning your department. 8

Physical Inventory – Home Loan Report Utilize Home Loan Report for quick inventory resolution.  Anything highlighted in Yellow is OLD and form needs to be renewed.  Names on spreadsheet indicate who should be in possession of the equipment. A quick response from them will suffice.  Renew any old or outdated equipment by the end of Round 1 in the inventory process (March 27 th ). 9

Physical Inventory – Building Schedule Check Building Schedule for an idea of when Fiscal Services will be scanning your department.  Dates are FLEXIBLE! Please wait for us to you to schedule a specific day and time to scan inventory.  If your equipment is in multiple buildings, look at the dates for the building that has the most equipment in it. We will likely scan ALL locations in one session unless across campuses. 10

Physical Inventory - Overview 11 Review Inventory (Nov – Dec) Physical Inventory (Jan – Mar) Inventory Round Reporting (Mar – June) Regular Management (June – Nov)

Physical Inventory - Overview January thru March Be prepared to accompany Fiscal Services through scanning process. Review Follow-Up Report and return to resolve any inventory that is easy to find. Start looking for missing items. 12

Physical Inventory – Scanning Preparation Be prepared to accompany Fiscal Services through scanning process.  Alert the entire department when we will be scanning. Let them know to bring in their laptops and make sure Mason barcodes are visible on all equipment.  Acquire any necessary keys or access codes for rooms containing equipment.  Review which rooms we need to visit ahead of time. You know your department better than we do! 13

Review Follow-Up Report to resolve any inventory that is easy to find.  These reports include both SCANNED and NOT SCANNED equipment. SCANNED equipment will be highlighted in GREEN on the report.  These reports are sent within a week of scanning. Please utilize the electronic version by arranging the report in whichever way is most helpful to you. 14 Physical Inventory – Follow-up Report

Inventory Round Reporting - Overview 15 Review Inventory (Nov – Dec) Physical Inventory (Jan – Mar) Inventory Round Reporting (Mar – June) Regular Management (June – Nov)

Inventory Round Reporting - Overview March thru June Use the Round Reports to report inventory as “found.” Know what to do if equipment is “missing” after the Final Round. Review Best Practices for keeping a low-stress inventory and even becoming an Exempt Department. 16

Inventory Round Reporting – Overview RoundSend DateDue DateNotes Round 1March 9thMarch 27 th Only sent to Liaison Round 2April 6thApril 24 th Sent to Liaison and Department Chair Round 3May 4 th May 22 nd Sent to Liaison, Department Chair, and Director Final Reports June 1 st n/a Only sent to departments with missing equipment containing a penalty. Used to report penalty items to SVP, Provost, and Budget Office. 17 Round Information *Note: Dates are subject to change. s will reflect any changes to this schedule.

Inventory Round Reporting – Round 1 & 2 18

Use the Round Reports to report inventory as “found.”  Be sure the most current Round Report is being used when reporting equipment as “found.” Sometimes equipment can turn up elsewhere.  Remember to update the Building and Room information on the spreadsheet. It is not “found” if we do not know the current location!  Return the same spreadsheet with highlighted changes. This is the cleanest way to report items as “found.” NOTE: We manually enter this information into a database so we must be sure of changes indicated on spreadsheet. 19 Inventory Round Reporting – “Found” Equipment

20 Inventory Round Reporting – Round 3

Inventory Round Reporting – Final Round 21 Know what to do if equipment is “missing” after the Final Round. If current book value of equipment is greater than the dollar threshold then it is subject to a penalty. Type of EquipmentAbbreviationDollar ThresholdPenalty? General EquipmentGEN$5000Budget reduction LaptopsLTP$1000Budget reduction Equipment Trust Fund ETF$500Replacement “Not Fixed Asset”NFAUnder thresholdsN/A

Inventory Round Reporting – Final Round Budget Reduction Example Missing GEN or LTP Equipment: Purchased 7/1/ year life (useful life) Cost of $10,000 Annual depreciation $2,000 ($10,000/5 years) Book value $8,000 Fiscal year 2016 budget reduced $8,000 for department with missing equipment 22

Inventory Round Reporting – Final Round Replacement Example Missing ETF Equipment: Purchased 7/1/ year useful life Cost of $2,500 Annual depreciation $500 ($2,500/5 years) Book value $1,500 Department must order a replacement item worth at least $1,500 within 90 days of receiving the Final Inventory Report. Purchase requisition should cite barcode of equipment being replaced and Fixed Assets should be notified. *Note: If ETF computer is older than 3 years it does not need to be replaced. (the 3 year rule applies to ETF desktops and laptops only) 23

Inventory Round Reporting - Best Practices Review Best Practices for keeping a low-stress inventory and even becoming an Exempt Department. Use web tools and be proactive throughout the year Request a pre-inventory report towards the end of the summer or early fall Return home loan information as soon as possible Use most recent report during inventory period Reschedule if not available for scanning or find a substitute Accompany inventory staff Provide access to all areas Notify faculty of inventory dates Equipment available and visible Be compliant with deadlines 24

Inventory Round Reporting - Best Practices Departments can be exempt from participating in the following year’s inventory if: 100% of items are found in Round 1 (Due March 27th) *Note: Departments with $500K in equipment can be exempt if 95% of items are found in the first round and 100% are found by end of the third round (May 22nd) Note: Departments cannot be exempt consecutively. You can be exempt in FY16 if you find 100% in this inventory (FY15) 25

Regular Management 26 Review Inventory (Nov – Dec) Physical Inventory (Jan – Mar) Inventory Round Reporting (Mar – June) General Management (June – Nov)

General Management - Overview June thru November  Keep the equipment safe and encourage others to practice internal controls in order to prevent loss.  Send the proper equipment forms to Fixed Assets when changes to equipment occur.  Utilize TraQ Express to help keep up with changes to equipment. 27

General Management – Internal Controls Importance of Internal Controls Lock up laptops and other small equipment Secure offices and storage rooms Keep information up-to-date in case of loss 28 Keep the equipment safe and encourage others to practice internal controls in order to prevent loss.

29 In case of Loss or Theft: Step #1: Contact University Police for Incident report Contact the University Police (3-HELP) as soon as the loss is discovered DO NOT DISTURB CRIME SCENE! Step #2: Gather Information Find out which equipment was stolen and if any was tagged. Good information to have: Barcode, Serial Number, Value of Item, Location, any information on who might have access to the location or any suspicious activity. Step #3: Contact Risk Management for insurance claim Proof of ownership Proof of replacement Related invoices Step #4: Send completed Equipment Loss Form to Fixed AssetsEquipment Loss Form Must include police incident report number in order to dispose of equipment General Management – Internal Controls

30 General Management - Forms Send the proper equipment forms to Fixed Assets when changes to equipment occur Available on the Fiscal Services Website Equipment Assignment/Loan Form Assign equipment to a specific individual Interdepartmental Transfer Form Transfer equipment to another department Equipment Surplus Form Dispose of a piece of equipment Request For Authority to Cannibalize Equipment Remove parts from specified equipment Go To Online Forms

General Management – TraQ Express 31

General Management – TraQ Express Utilize TraQ Express to help keep up with changes to equipment TraQ Express is an online connection to the same database that Fixed Assets uses to track equipment Access TraQ from your browser using the following URL: For help, a manual is available online: 32

33 General Management – TraQ Express Notes About TraQExpress Use Internet Explorer web browser for best results MUST be logged in to the Mason network in order to access Login ID is your MESA login HOWEVER the password is set by you Submit TraQ Express – Web/Client Access Form for accessTraQ Express – Web/Client Access Query for current Inventory: 1.Item Status -> Equal -> “Active” 2.Asset Cat Code -> Equal -> “4” 3.ETF1 -> Not Equal -> “NFA” 4.Owner Code -> Equal -> [insert unique owner code] Go To Live Demo

34 Announcements Surplus Workflow Paper form will no longer be available Feb 1 st Go to website for quick guides. Contact Equipment Program Admin x or if having issues. Fiscal.gmu.edu  Sign In Systems  Workflow  Equipment Surplus Workflow Surplus Workflow

Contact Information Financial Reporting Manager Joy Sobieralski Equipment Program Administrator Neda Delavarpour

36 Announcements Thank you for attending! On your way out please:  Grab any necessary materials.  Ask any questions you may have.  Introduce yourself if we have never met !