General InformationGeneral Information
This policy provides general information regarding the function and responsibilities for asset management at the Georgia Institute of Technology (Institute). Management of assets is administered by Property Control of the Procurement & Business Services unit.
The State of Georgia General Statutes requires the Institute to be accountable for all equipment under its control. The Institute must also comply with the provisions of the Approval of Management, Budget Circulars A-21, Revised, SAS 112 (Federal Audit Guidelines) and A-110 to assure proper reimbursement of federally funded research and training projects.
The maintenance of a perpetual inventory of equipment is necessary to achieve correct financial reporting for the institution, to provide the basis for suitable insurance coverage, and to assist departments in accountability for their equipment.
In accordance with state & Board of Regents guidelines, the current threshold for which an inventory of an asset is maintained is $3000 with a life expectancy of one or more years. Items which do not meet the current threshold may be maintained on the inventory to meet contractual requirements, or to effect proper management of small and/or unique groups of movable personal property. The following items, are required to be inventory controlled without regard to the $3000 minimum cost:
- Books and periodicals (Total dollar value shall be capitalized each year)
Property Control Department responsibilities:
- To be accountable for all equipment under its control as mandated by state and federal regulations. Property Coordinators must complete the “Asset Management for Property Coordinators” training. Click here to learn more.
- To provide internal control of capital assets, including proof of existence, ownership, location and proper valuation.
- To provide uniform procedures for furnishing information needed for effective analysis and control of capital expenditures.
- To provide a database of inventory information to meet equipment management/reporting needs of the Institute.
Unit Head Responsibilities
Colleges and Cost Centers are accountable for all equipment under their control. They have an important role in the maintenance of an accurate, up-to-date inventory system. The custodianship of property purchased by or assigned to a Cost Center is the responsibility of the Cost Center unit head. The responsibility includes ensuring that the physical security is maintained over all property; tagging items valued at $3000 or more; preparing property reports as required; and documenting and reporting all acquisitions, disposals and changes in the status of unit equipment. Fulfillment of these responsibilities on behalf of the Cost Center unit head may be delegated, but the ultimate responsibility remains with the Cost Center unit head. Adherence to the following guidelines helps to ensure that Cost Center inventory records are as accurate and complete as possible.
- Correct coding of purchase requisitions and purchase orders. Correct coding by Cost Centers during purchase requisition avoids unnecessary and time consuming corrections after receipt of the equipment.
- Proper coding of capital asset expenditures. Equipment purchases must be coded with a SC714400, SC743XXX, SC744XXX, SC841XXX, SC843XXX expenditure account code. Use of an account code other than these increases the possibility that the asset will be omitted from the inventory records.
Benefits of Inventory Systems
The perpetual inventory system provides the Institute with the following key benefits:
- Equipment control and accountability through a comprehensive campus-wide inventory system.
- Improved equipment utilization through control and identification of capital assets.
- Database to meet Institute, state and federal grant, and audit requirements.
- Database to meet requirements of proper risk management and provide basis for identifying equipment for the State's self-insurance program.
- Basis for management to project and budget future capital replacement requirements.
The vast majority of capital asset acquisitions are generated by purchase requisition. Colleges and Cost Centers authorize equipment purchases by initiating purchase requisitions through Workday.
When the equipment is received, the Unit's Property Coordinator enters into the web page the pertinent physical asset information including the “Tag Number” in to Workday.
The asset accounting records are selected from the General Ledger based on the spend category. Property Control makes any corrections to an asset record to accurately reflect the description, cost and other pertinent accounting information. Assets, including Federal Surplust items, are recorded at actual cost.
A report of untagged items is extracted by Property Control. If a matching record is not found, Property Control will notify the Unit via e-mail. The Unit will have 5-days to enter the asset information into the Workday. The cycle is repeated again to match newly entered information.
Property Control is responsible for record retention and ensuring that all taggable assets are identified through internal controls.
|12/2020||Property Control||Terminology alignment with Workday|
|08-2013||Property Control||Update to policy|