1. Controllers Office Department Asset Custodian Training Controllers Office Capitalized Asset Management

2. Controllers Office Introduction The head of a custodial department and the Principal Investigator have primary responsibility for the care, maintenance, records, physical inventory, control, and disposition of inventorial equipment and other University or extramurally-funded property. UCOP – BUS-29, Section C

3. Controllers Office Introduction The purpose of this workshop is to acquaint YOU as asset custodians with policies and procedures, tools and resources that are available to you in caring for the Universitys capitalized assets. You can thus fulfill the goal of safeguarding the high-value assets of the University in the best manner possible.

4. Controllers Office Who Are Those Guys? CAM is a part of UCSF Controllers Office Capital Accounting. It is responsible for: Maintaining a database of asset information in the PeopleSoft Enterprise Online Financial System, Capitalizing assets purchased, leased, donated or transferred to UCSF, Monitoring campus-wide adherence to University policies and guidelines, Maintaining inventory controls and accountability systems, Organizing and implementing the campus-wide biennial physical inventory

5. Controllers Office Who Are Those Guys? (continued) - Reviewing and approving asset transfers to other UCSF departments, UC campuses or non-UC entities, - Reviewing and approving the disposal of excess property in accordance with applicable policy and regulations and - Providing consolidated reporting to UCOP and other funding agencies.

6. Controllers Office A couple of definitions… Capital Asset - Any purchase of physical equipment with a cost greater than or equal to $5000- (including sales tax, start-up supplies, delivery, and installation) with a useful life greater than one year. For example, if you purchase a piece of equipment for $4800- it will most likely be considered a Capital Asset after taxes, etc. Custody Code – The custody code is a 4-digit code issued by CAM at the behest of the department. Each custody code requires a custodian who is responsible for tracking the equipment. Departments are required to supply a custody code number to Procurement Services when a requisition is created.

7. Steps in the purchase of Inventorial equipment 4. Biennial inventory and/or changes to equipment status are updated with CAM. 3. Custodian receives tag, affixes to equipment, and returns tag form with model, serial#, and location 2. Equipment identified, coded, and assigned a tag# 1. Purchase order initiated in Bearbuy

8. 4. Biennial inventory and/or changes to equipment status are updated with CAM. 3. Custodian receives tag, affixes to equipment, and returns tag form with model, serial#, and location 2. Equipment identified, coded, and assigned a tag# 1.Purchase order initiated in Bearbuy Steps in the purchase of Inventorial equipment

9. Controllers Office Steps in the Purchase of Inventorial Equipment Purchase Order generated in BearBuy At this time the Capital Equipment form should be used and your custody code should be assigned by the requestor/purchaser.

10. Purchase Order in BearBuy Capital Equipment Form

11. Controllers Office Use this form for any Capital Equipment Purchase or Capital software purchase

12. Controllers Office Be sure to fill in the custody code under the Asset Management tab on Purchase Order

13. Controllers Office Purchase Order generated in BearBuy At this time the Capital Equipment form should be used and your custody code should be assigned by the requestor/purchaser. Get to know/contact the purchasers for your department. If you do not know who they are, get in touch and Ill send you a list. Familiarize them with your code & when to use it.

14. 4. Biennial inventory and/or changes to equipment status are updated with CAM. 3. Custodian receives tag, affixes to equipment, and returns tag form with model, serial#, and location 2. Equipment identified, coded, and assigned a tag# 1. Purchase order initiated in Bearbuy Steps in the purchase of Inventorial equipment

15. Controllers Office CAM (Capital Asset Management)reviews the PO: Assigns an EQ code (this is a code used to establish useful life of equipment) Assigns a tag# (You will receive the tag with tag form shortly after to fill out).

16. Property Tag

17. 4. Biennial inventory and/or changes to equipment status are updated with CAM. 3. Custodian receives tag, affixes to equipment, and returns tag form with model, serial#, and location 2. Equipment identified, coded, and assigned a tag# 1. Purchase order initiated in Bearbuy Steps in the purchase of Inventorial equipment

18. Custodian Receives Tag: Affix tag to associated equipment Review description and send back the model number, serial number, and location

19. Controllers Office Role of the Custodian Liaison between CAM and the Department Primary contact point for Department Provide current information to CAM to assure accurate records Insures University and Federal requirements are met (i.e. donations, transfers, disposals, etc.).

20. Controllers Office Definitions For discussion purposes today the only definitions that will be included are those required to create an asset file in PeopleSoft and for reporting to UCOP. However, the manual lists many others and the custodians should be familiar with all of them.

21. Controllers Office Definitions (continued) - CAAN/Location – An up to 8-digit code representing building AND room. Federal Regulations require both building and room number. - Custody Code – The custody code is a 4-digit code issued by CAM at the behest of the department. Each custody code requires a custodian who is responsible for tracking the equipment. Departments are required to supply a custody code number to Procurement Services when a requisition is created.

22. Controllers Office Definitions (continued) Inventorial Equipment – A single unit, freestanding, non-expendable, with a cost (including sales tax, delivery, and start up accessories and supplies) equal to or greater than $5,000.00. Property Number – A nine-digit number printed onto a barcode tag that is affixed to the equipment as a unique identifier.

23. Controllers Office Definitions (continued) Groupings within the 9 digits – nn+nn+n+nnnn First two digits –year asset was added to the asset inventory (last 2 digits) Second two digits – UC Campus that originally acquired asset (e.g. 10=Berkeley; 20=S.F.) Fifth digit (under UCSF) - 0 for Campus, 3 for Gallo Clinic, 5 for Medical Center, and 9 for Vehicles. Last four numbers - issued sequentially to uniquely identify each asset.

24. Controllers Office Definitions (continued) Manufacturer – The company that produces or OEMs the equipment Model Number – The number assigned by the company to identify specific versions of equipment. Description – This is a simple one or two-word field to help the custodian locate equipment. EQ Code – A 5-digit (one alpha and 4 numeric number) code that is based on the type of equipment and is used by UCOP to calculate depreciation.

25. Controllers Office Primary Responsibilities 1) Change of Custodian Custodian Maintenance Form 2) Property Tag 3) EIMR form All additions to inventory All removals of equipment 4) Biennial Physical Inventory 5) Physical Inventory Audit

26. Controllers Office Change of Custodian Fill out Custodian Maintenance form. Include all custody codes the change is applicable to. Obtain approval (sign off) from the Financial Administrator or Business Officer. Send or email the form with Section 2 completed to CAM.

28. Controllers Office Primary Responsibilities 1) Change of Custodian Custodian Maintenance Form 2) Property Tag 3) EIMR form All additions to inventory All removals of equipment 4) Biennial Physical Inventory 5) Physical Inventory Audit

29. Controllers Office Property Tag

30. Controllers Office Primary Responsibilities 1) Change of Custodian Custodian Maintenance Form 2) Property Tag 3) EIMR form All additions to inventory All removals of equipment 4) Biennial Physical Inventory 5) Physical Inventory Audit

31. Controllers Office Provided by CAM Lets us know what you want to do. Item Description 1) Surplus 2) Transfer to another department 3) Sale 4) Remarks, always include Signatures

32. Controllers Office New Assets Equipment may be added to a departments inventory in the following ways: - A Purchase Order is processed through Procurement Services. - A Lease Agreement > $100,000 total value - A department receives a gift (cleared by Development Office) - Equipment is transferred from another institution or UC Campus - Equipment is borrowed from an outside institution

33. Controllers Office Principles of Equipment Disposals A department may dispose of equipment ONLY IF the University holds title. An EIMR must be submitted whenever equipment is to be removed from a departments inventory.

34. Controllers Office Retiring Assets 1)Send to Surplus Sales for public sale or disposal. 2)Destroyed or cannibalized for parts 3)Stolen. EIMRs reporting stolen equipment MUST include a police report number. 4)Intercampus Transfer - letter from department head - Other campus EIMR with signature of recipient campus equipment manager - EIMR from department 5)Lost

35. Controllers Office Retiring Assets (continued) 6)Donate to a non-profit or educational institution. The following procedure must be followed per BUS-38: - Requesting agency submits request on letterhead - Dept Head verifies in writing that equipment is no longer useful in dept - Department submits request, letter, and EIMR to CAM. 7)Sold to another non-UC non-profit entity in conjunction with faculty move.

36. Controllers Office Primary Responsibilities 1) Change of Custodian Custodian Maintenance Form 2) Property Tag 3) EIMR form All additions to inventory All removals of equipment 4) Biennial Physical Inventory 5) Physical Inventory Audit

37. Controllers Office Physical Inventory - Purpose The reason for the physical inventory is to produce an accurate inventory through: Physically locating equipment that is in use, Removing from the database equipment not found, and Adding high value equipment which is being used but is not included in the asset list. Updating existing equipment attributes (Description, Mfg., Model, Ser. ID, etc.)

38. Controllers Office What Is At Stake? Federal funding requires system-wide compliance with their asset management policy and procedures Certification as a Federally compliant research facility is contingent on adherence to established guidelines UC Office of the President financial reporting requires up-to-date inventory information Campus Facility and Administration (F&A) rate is affected and Insurance payments in case of loss, theft, or disaster hinges on substantiation of location recorded in the system.

39. Controllers Office Physical Inventory – Process Per State and Federal regulations complete inventory of campus and medical center required every 2 years. CAM will provide custodian with a list of equipment by custody code. Custodian embarks on search or organizes search party to locate and verify each piece of equipment listed.

40. Physical Inventory Process (Continued) The notification email will include the following attachments: List of Assets List is arranged first by building code/room number, then by property tag number and furnished in both PDF and Excel file formats. Instruction Sheet Link to online tools Tools include schedules, forms, building code lists, comprehensive information and instructions and other resources helpful toward a successful completion. 10/4/2013 PROCESSES

41. Controllers Office Process (continued) During the inventory process the custodian should verify the following attributes which can be changed if necessary: Location - Building (CAAN) and room number Description Manufacturer/Model Number Serial Number (should be provided if not listed)

42. Controllers Office Process (continued) Attributes that cannot be changed by the department are: - Property Tag Number - Cost - Original Dept ID/Fund

43. Controllers Office Primary Responsibilities 1) Change of Custodian Custodian Maintenance Form 2) Property Tag 3) EIMR form All additions to inventory All removals of equipment 4) Biennial Physical Inventory 5) Physical Inventory Audit

44. Controllers Office Physical Inventory – Field Audit All submittals for a particular month are subject to a random sampling audit. CAM randomly selects 10% of the asset population sent in during the targeted month. CAM emails custodian with assets to be verified clearly identified. A CAM team member and the department asset custodian travels to the location specified in the physical inventory findings by appointment to confirm accuracy of reported data. An error rate of 10% or less of sample population constitutes a successfully- completed physical inventory. An error rate of greater than 10% requires a second random sampling audit. If the second audit is unsuccessful, all custodial departments submitting physical inventories for the target month will need to re-take their physical inventories. PROCESSES

45. Controllers Office Physical Inventory – Summary The departmental physical inventory is considered complete when: Custodian returns listing with corrections; CAM enters corrections and sends the updated inventory report to custodian; Custodian and department head signs off that the inventory report is accurate; Statistical sampling audit produces 10% or fewer errors. PROCESSES

46. Controllers Office Wheres the Help? Asset Custodian Training Workshops held periodically Controllers Office Website at: http://controller.ucsf.edu/http://controller.ucsf.edu/ Capital Accounting & Equipment FAQs Policies Procedures & Job Aids Training Forms Contacts Department Asset Custodian Manual handed out at the workshops and available for viewing or printing from Controllers Office website WebLinks Asset Management Report (AM) module accessed for historic equipment information Desktop Training Program, one-on-one training for asset custodians. CAM sends a team member at departments invitation to discuss the responsibilities of the position, how to access online resources and any unique challenges the custodian faces. Controllers Office Monthly Electronic Newsletter EPILOGUE

47. http://controller.ucsf.edu/

48. Controllers Office http://controller.ucsf.edu/ Overview – Introductory information if you are new

49. Controllers Office http://controller.ucsf.edu/ Forms related to capital accounting

50. http://cpbc.ucsf.edu/

51. Who Can I Call? EPILOGUE Physical Inventory Contact – Terence Hurley terence.hurley@ucsf.edu 415-502-2657 terence.hurley@ucsf.edu Equipment Accounting - Angela Farren angela.farren@ucsf.edu 415-502-5642angela.farren@ucsf.edu Equipment Invoices - Jim Antuk jim.antuk@ucsf.edujim.antuk@ucsf.edu 415-476-2885 Capital Accounting Supervisor – Renee Boyd renee.boyd@ucsf.edu 415-502-3042 renee.boyd@ucsf.edu Capital Accounting Manager – Amy Nichelini amy.nichelini@ucsf.edu 415-476-2997 amy.nichelini@ucsf.edu

52. The End