ASSET MANAGEMENT TABLE OF CONTENTS

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1 ASSET MANAGEMENT TABLE OF CONTENTS Strategic Value... 2 Department Objectives... 2 Programs... 2 Acquisitions... 2 Inventory... 2 Surplus Property... 2 Internet Sales... 3 PC Shop... 3 Construction Accounting... 3 Organizational Structure... 4 Key Performance Indicators and Benchmarks... 5 Work and Financial Plans... 6 Opportunities... 9 Capitalization threshold... 9 Inventory process... 9 Records retention... 9 Warehouse... 9 Barriers... 9 No system for attractive items... 9 Size of storage facilities... 9 Appendix Capitalization Thresholds...10 Inventory Procedure...10 Acquisitions...10 Dispositions...12 Safeguarding Attractive and Sensitive Property...13 Reducing, Re-Using and/or Recycling University of Florida Electronic Equipment P age

2 Strategic Value Finance and Accounting, a division within the Office of the Vice President and Chief Financial Officer, provides accounting and financial administrative support for the University and its core missions. Asset Management Services provides support services to the University community to facilitate the management of tangible personal property, including furniture and equipment with a value greater than $1,000, and all buildings. It is the mission of Asset Management Services to establish directives and procedures for accountability and control of state owned and government owned equipment entrusted to the care of University employees and to provide quality support services in a responsible and accountable manner. Department Objectives In fulfilling our mission, our objectives are to: Manage, account for and safeguard the University s tangible personal property Facilitate the recycling and reuse of property Provide construction accounting services Assist with financial reporting Manage records retention for Finance and Accounting and Contracts and Grants Provide quality customer service, training and information related to University Directives and Procedures Programs Following is a description of the key programs and methods utilized in managing the tangible assets of the University. Acquisitions Consists of loading acquisition data into the asset management module and creating property records for newly purchased or donated property based on information from vouchers, receipts, purchase orders, invoices for pcard payments and donation documents. As required by state and federal regulations, each property record will contain the item s description, asset class, acquisition date and method, dollars contributed from federal funds, a depreciation profile, property custodian, location, serial number, manufacturer, primary user of the item, ECCN (Export Control Classification Number) or ITAR (International Traffic in Arms) class when available and correct cost. Once the property record is created in myufl, staff will print a decal. The decal will either be placed on the equipment by asset management staff or mailed to the department for placement. Inventory Consists of the annual physical inventory of all capitalized tangible personal property owned by the University as required by state and federal regulations. The recording of accurate disposition of equipment is part of the inventory process. A barcode scanner to scan decals of equipment with an acquisition cost of $1,000 or more is used to complete this task. Surplus Property Surplus Property offers several services to the University including picking up and transporting all surplus furniture and equipment from the various departments to the warehouse. Once the items are received in the warehouse, they are available to all university departments. Additionally, departments are encouraged to swap surplus furniture and equipment through the myasset tool before it is transported to the surplus warehouse. 2 P age

3 For the public, surplus items not needed by the university are offered for sale through an on-line public auction. Any items not reusable or sold are disposed of through a certified recycling company. Certain proceeds received from the sale and recycling of items are used to offset the cost of operating the surplus warehouse. Internet Sales Consists of posting surplus items on the public auction site for sale. Staff collects payment and records the sale in myufl. PC Shop Consist of testing and preparing surplus computers and printers for reuse by the university or sale at public auction. Any items not useable are disposed of through a certified recycling company. Construction Accounting Consists of vouchering payments to internal and external vendors, determining asset classes for capitalizable vouchers, preparing documentation for the capitalization of construction project transactions to the asset management subsystem. Supervise and maintain all accounting and budgetary records for all construction projects. Reconcile University construction records with Department of Education construction records. Prepare annual financial statements for 14 funds. Prepare cash draws from Department of Education to fund projects. Transfer funds from departments to construction projects. Set-up construction projects in myufl. Enter deposits in the accounts receivable system. Enter journal transfers in general ledger. 3 P age

4 Organizational Structure Asset Management Services is organized along functional areas: Inventory/Surplus Property, Acquisitions, Internet Sales, and Construction Accounting. The staff consists of 24 team members: an Assistant Controller, 3 Accounting Coordinators, 20 property and fiscal team members and 2 OPS postions. 4 P age

5 Key Performance Indicators and Benchmarks 5 P age

6 Work and Financial Plans 6 P age

7 7 P age

8 8 P age

9 Opportunities Capitalization threshold Currently the capitalization threshold is $1,000 as dictated by state statute. The state universities and the University Board of Governors are working to change the threshold to $5,000. Inventory process State statute requires the University to perform a physical inventory of all tangible personal property on an annual basis. Related to our desire to change the capitalization threshold, the University would also like to explore a change to this requirement. Records retention Asset Management Services stores source documentation, as required by regulation, for financial transactions flowing through the myufl system for Finance and Accounting and Contracts and Grants. The current storage building has become unusable due to age and structural failure. We are currently using space belonging to Physical Plant and the Vice President for Business Affairs. This space has been loaned to us on a temporary basis with the promise and understanding that we will find another permanent space for our use by calendar year end Warehouse Our current warehouse for surplus property is inadequate for the University s volume. Additionally it has significant structural issues and is in a severe state of disrepair. It is not climatized nor suitable for the storage of most types of furniture and equipment Barriers No system for attractive items The University s current asset management system does not contain functionality for the tracking and management of attractive items costing less than the capitalization threshold. Departments therefore must create and maintain their own systems for this. This creates a significant internal control risk for the University in this area. Size of storage facilities The size of our surplus warehouse prevents us from storing disposed of property for long enough periods of time for potential reuse by other university units. 9 P age