Inventory Policies and Procedures DE-437 (Required)

Inventory Policies and Procedures

DE-437 (Required)

Class Objectives

• Establish an understanding of Inventory and Inventory’s role.

• Understand why a physical inventory is conducted.

• Understand the basic steps of performing physical inventory.

• Recognize the importance of updating inventory statuses and locations

Why is inventory management so important?

Because The University of Texas at Austin has over $2 billion worth of assets in which to maintain and report to the State of Texas and over $160 million reportable to federal agencies.

The best way to track equipment is to know where the equipment is at all times. Always update the location of an asset in *DEFINE commands NV1, NVP, or the FRMS Departmental Inventory Portal when the location changes!!!!!

Let’s keep UT out of the headlines!

Whose “stuff” is it anyway?All equipment is consideredstate property unless designated as federal or privately owned!

Ownership codes for an item are determined by funding source:

Look for the following on your equipment listing to determine who owns the asset:U-University, P-Private, F-Federal

How are assets acquired?

Purchases - purchase orders, Procards (VP7), etc.Purchases - purchase orders, Procards (VP7), etc.

Noncash gifts from vendors, individuals, etc. must be Noncash gifts from vendors, individuals, etc. must be reported through the University Development Office.reported through the University Development Office.

Transfers into the university as a result of a Principal Transfers into the university as a result of a Principal investigator (PI). Notify Inventory Services at investigator (PI). Notify Inventory Services at [email protected]. .

Inter-agency transfers from another state agency such as Inter-agency transfers from another state agency such as TX DOT, UTMD Anderson. Complete and submit form TX DOT, UTMD Anderson. Complete and submit form Property Transfer Receipt – IncomingProperty Transfer Receipt – Incoming to Inventory Services.

How are assets acquired? Continued

Equipment transferred to the university from a non-Texas Equipment transferred to the university from a non-Texas state agency or private institution. Submit the state agency or private institution. Submit the Non-Texas Non-Texas State Agency Incoming - Property Transfer State Agency Incoming - Property Transfer ReceiptReceipt formform to Inventory Services.

Equipment found in the department that meets the Equipment found in the department that meets the controlled or capitalized thresholds but was assigned a controlled or capitalized thresholds but was assigned a noninventory object code and therefore not in *DEFINE. noninventory object code and therefore not in *DEFINE. Notify Inventory Services at Notify Inventory Services at [email protected] of this equipment. of this equipment.

CCART NT1 electronic transfers from other departments. CCART NT1 electronic transfers from other departments.

How are assets acquired? continued

Completed fabrications or CIP - departments complete Completed fabrications or CIP - departments complete construction of one of a kind item. See HBP for definition of construction of one of a kind item. See HBP for definition of fabrication:fabrication:

Handbook of Business Procedures (HBP) Handbook of Business Procedures (HBP) 16.5.5.6 Fabrication/Cannibalization 16.5.5.6 Fabrication/Cannibalization of Equipment.of Equipment.

Government-furnished equipment - GFE equipment is furnished by Government-furnished equipment - GFE equipment is furnished by the U.S. government to the university to be used for research and the U.S. government to the university to be used for research and development in research contracts or grants. Title is with the U.S. development in research contracts or grants. Title is with the U.S. government.government.

Federal excess personal property - government-furnished Federal excess personal property - government-furnished equipment that is obsolete to the governmentequipment that is obsolete to the government

For any questions regarding CIP, GFE, and FEP, contact theFederal Inventory team at [email protected]

Non-monetary Gift

• If your department receives any non-momentary or noncash gift such as equipment, furniture , software, artwork ,or vehicles from an individual donor or corporation please report these assets to the UT Development Office for appropriate recording.

• Inventory Services is notified by the Development Office once the gift process has been finalized for possible inclusion to the Inventory system.

• Because of IRS tax donor credit once added the gift must remain in *DEFINE for two years before it can be disposed of or transferred to surplus. The department should contact the Development office if such a need arises before the 2 years.

Inventory Services Role

• Maintains equipment inventory records on shared mainframe database.

• Locates and tags university equipment as it is purchased and received by departments. For departments that self-tag, we use their details to add assets to *DEFINE.

• Conducts and monitors the annual physical inventory cycle. Audit those reports submitted by the university departments.

Inventory Services Role

• Provides inventory information and reference resources to department personnel.

• Ensure that university and state policy guidelines are being met.

• Reports and reconciles inventory records and values to:• Annual financial report schedules• State of Texas Comptroller’s Office• Federal agencies

The Inventory Contact’s Role

• Tracking (tagging and updating item’s locations in *DEFINE or Inventory web portal if asset moves)

• Reporting (conduct annual physical inventory and report results on certification)

• Reconcile (NVP department equipment listing to what you have in your possession and

complete IRR removal forms for relinquished equipment)

What gets tagged?

• Capitalized Assets—assets whose purchased value is equal to or greater than $5,000

• Controlled Assets—assets whose cost is between $500 and $4,999.99 and fall under the special category designated by the state

Tracking Inventory

Examples of Controlled Equipment($500 to $4999.99)

• cameras & camcorders• projectors• stereo systems• televisions & VCRs• computers: desktop CPUs or portable

laptops• Smart Phones, Tablets and other

HandHelds• hand guns & rifles, regardless of cost

• computer-related equipment not PC’s or laptops• scientific equipment• monitors• printers or servers• hard drives• cards• furniture• Software - “Software must be 100K or more to be

capitalized and Licenses must be greater than 1 year”.

In order to be tagged and included on your inventory, this equipment must be $5,000 or more in value (it becomes capitalized).

What is not controlled?

• Tagging the Equipment• Inventory field representatives

• They are deployed automatically based on purchasing data.

• To request tagging, e-mail [email protected].

• Departments that participate in self-tagging• After tagging assets, these departments send

the tagging detail to Inventory Services for processing.

• This information should be sent monthly.

Tracking Inventory

• All “capitalized” or designated “controlled” assets must be tagged within 30 days of receipt. “See Best Practices for self-tagging on our web page”

https://www.utexas.edu/business/accounting/in/

• Any asset not meeting the “controlled” or “capitalized” thresholds should have a non-inventory object code and will not be added to *DEFINE. These assets can be tagged with blank tags that identify the item as UT property but do not have a tracking number.

Tracking Inventory

Questions you may have when conducting physical inventory.

Who? Why? When? And How?

• Who is designated as the inventory contact responsible to ensure that my department is compliant?

• Why do we conduct a physical inventory?

• When do we perform inventory?

• How is physical inventory performed?

If you are assigned the role of the inventory contact for your area:•Verify the *DEFINE GG5 screen for accuracy.

• Work with your supervisor and team members to determine which unit codes you are responsible for.

• Be sure that the correct inventory contact is listed in GG5 for all units and subunits in your department . If your name is listed, you are responsible.

To determine who is your contact see *DEFINE command GG5 for contact information for your department

*DEFINE command GG5 can be updated via the OHS system

To assign department contacts at the unit code level, go to List Contacts in the (OHS) Organizational HierarchySystem. This new system will allow you to assign secondary or backup contacts.

https://utdirect.utexas.edu/ohs/contacts/

To update the unit head of a unit, complete the complete the Signature Desk Requestform

http://www.utexas.edu/business/accounting/sign/

Why do we conduct a Physical Inventory?

The provisions of the 52nd Legislature:• Regular Session 1951• House Bill Number 753, Section 5 (3)• Requires state organizations to take a complete

physical inventory of all equipment in their possessions once each year

Results reported to:

State Comptroller TEX.GOV’T CODE ANN.sec. 403.271 (b)

When do we perform Inventory?

Inventory Services establishes eight inventory cycles. Cycle deadlines are based on the number of items assigned to the departments. The deadline for Cycle 1 is Jan. 27, 2014. All other Cycle deadlines will occur between February through June.

The FY13-14 cycles have been posted to the inventory web page and may be viewed at anytime.

Please Note-You may begin your inventory at any time the system is open- the earlier the better.

How is physical inventory performed?

Manual status update to *DEFINE or Inventory web portal if you have 100 items or less.

Status updates via scanning your equipment.

Once *DEFINE is open you may request ascanner by emailing:[email protected]

Complete Four Basic Steps

Use the NVP report:

The annual physical inventory process is a procedure performed annually to account for assets and equipment belonging to the university.

1. Locate

2. Scan

3. Reconcile

4. Report

Tips, Tidbits, and Hints • Start early. • Keep a trail of paperwork.

• Make copies.• Use correct inventory forms.

• Notify Inventory Services of untagged or tagged equipment not on *DEFINE that meets the threshold.

• Request a new barcode/tag when:• damaged• worn• missing• will not scan

• If Self-tagging, communicate New Tag info.

Safeguarding Assets

• Be organized.Keep a record of off-campus equipment.

• Be observant.Frequently monitor all current assets.

• Be perceptive.Keep an eye on equipment awaiting Surplus pickup.

• Be efficient.Keep track of assets out for repair.

I have been designated as the contact for my department Visit the inventory services web pageHttp://www.utexas.edu/business/accounting/in/To access forms, links to CCART transfers, FRMS departmental webportal and certification due dates

Additional ResourcesAssigning Inventory Object Codes* - NewCapitalized vs. Controlled Object CodesDepreciation Calculation Template (Excel Format)Inventory Best Practices* - NewInventory Contact Guide* - NewList of Controlled Items* List of Controlled and Capitalized Items*Self Tagging Template (Excel format)

Before You Begin

• Know your certification due date and gather tools and materials to meet the deadline.• Run a current NVP report of departmental

assets. For a step by step guidehttp://www.utexas.edu/business/accounting/pubs/nvp_report.pdf

• Review the building/room list from the NVP for your area

• scanner for those departments with greater than 100 items (this has to be scheduled) email [email protected] to make arrangements.

To access and print the NVP report from *DEFINE

Please enter your next command<<

*DEFINE INVENTORY FUNCTIONS MENU - NVM Year: 13 14

Command: NVM Inventory Nbr: ________ Misc: _______________ Month: OCT

==========================================================================

COMMAND FUNCTION: MISCELLANEOUS

1. NV1 DISPLAY BY INVENTORY NUMBER ELEMENT NBR-OPTIONAL 2. NV3 DISPLAY BY UNIT-CODE UNIT-CODE 3. NV7 DISPLAY BY SERIAL-NBR SERIAL-NBR 4. NVP PHYSICAL INVENTORY BY UNIT/LOCATION UNIT CODE 5. NVR INVENTORY DATA WAREHOUSE REPORTS INVENTORY STATUS 6. NVB INVENTORY BALANCES BY UNIT CODE UNIT CODE 7. NV6 DISPLAY BY DOC-ID DOC-ID

SELECT #4 FROM THIS SCREEN

•For step by step guide to running an NVP Report*: http://www.utexas.edu/business/accounting/pubs/nvp_report.pdf

Printing NVP report:

• Pick up the NVP print out at the UT Copy Center located at the Social Work Building Room G14.

• It is usually ready in about an hour.

Why can’t I use the online *DEFINE NVP report for my certification?

The printed NVP report will contain purchasing, serial # , and percentage stats not seen from the *DEFINE online command or the FRMS departmental web portal

*DEFINE PHYSICAL INVENTORY BY UNIT/LOCATION - NVP Year 13 14 Command: NVP Inv. Nbr. ______ Misc: 5100000________ Month: OCT ================================================================== Dept: OFFICE OF ACCOUNTING Show Items Found: X Not Found: X View: 1 by Inv Nbr: X Start Inventory Nbr: 846084 by Location: _ Site: __________ Bldg: __________ Flr: __________ Rm: __________ Status InvNbr Elm Site Bldg Floor Room Description Item Cost -------- ------ --- ---- ---- ------ --------- ---------------- --------------- _ 602351 1 UTM_ 0393 01____ 132______ MICROFILMER/ENDO 6,929.25 _ 681726 1 UTM_ 0393 01____ 132______ 1998GMC SAFARI V 20,500.00 _ 713273 1 UTM_ 0393 01____ 132______ CAMERA, SONY 505 999.96 _ 760724 1 UTM_ 0393 01____ 132______ 2003 CHEVY TRAIL 19,616.00 _ 816313 1 UTM_ 0983 02____ 2.302____ DELL LATITUDE E6 1,882.86 _ 816315 1 UTM_ 0983 02____ 2.352____ DELL LATITUDE E6 1,882.86 _ 823797 1 UTM_ 0393 01____ 132______ EPSON POWERLITE 539.99 _ 833977 1 UTM_ 0393 15____ 1510_____ DELL LATITUDE D6 1,538.88 _ 843204 1 UTM_ 0561 01____ 110______ DELL AX4-5F (DUA 15,606.61 _ 843204 3 UTM_ 0561 01____ 110______ DELL AX4-5F (DUA 4,548.60 _ 843226 1 UTM_ 0561 01____ 110______ DELL QUAD CORE X 7,249.90 _ 846082 1 UTM_ 0561 01____ 110______ DELL QUAD CORE X 6,275.52 _ 846083 1 UTM_ 0561 01____ 110______ DELL QUAD CORE X 7,249.90 _ 846084 1 UTM_ 0561 01____ 110______ DELL QUAD CORE X 5,555.9

Understanding the NVP Report printout. Each report consists of 2 sections:Found

New fiscal year acquisitions are typically indicated as “found” when they are added to your inventory.

CIP- construction in progress.

NETL-items found through the (UNET) Network locator

Not Found (need to locate)

Items transferred in

Any prior-year asset acquisitions

Items previously indicated as missing-continue to look for these items and change the status if the item is found. You do not need to remark as missing if the asset was not found during the annual physical inventory process.

Additional Information: 9XXXXX Numbers

Why are there inventory numbers on my NVP report beginning with ‘9’ that are not affixed to my equipment?Because of system limitations, Inventory Services must clear out the *DEFINE NU1 screen at the end of the fiscal year and assign virtual numbers for tracking and reporting purposes.

Do I need to find these items?Yes. Part of the certification requirement is to work with Inventory Services to get any items with these virtual numbers converted to university barcode tags that can be scanned.Only software, CIP, or artwork can have a virtual number.

Additional Information: 9XXXXX Numbers-continued

• Notify Inventory Services:• If you have virtual numbers for equipment other than

software and artwork.

Example: 988889-Dell G4 computer was tagged 778904

• Please include the serial number.

• Self-tagging: • Tag equipment.• Send spreadsheet to Inventory Services.

What is New with the NVP equipment listing?

In addition to purchased, gifted or transferred in equipmentthe NVP report will now include fabricated items also known as CIP (construction in progress)

• What is fabricated or CIP equipment?Fabrication is a transitional state; completed items of fabricated equipment are recorded as capital equipment in the university's asset DEFINE system. Until that completion can be determined they are CIP.

• How do I account for these on my NVP? Do I need to find these items?

No these items should already be indicated as ‘found’.

Characteristics of Fabricated Equipment• one-of-a-kind items• meet unique research specifications• created by assembling a number of components

(manufactured or custom made)• built or assembled from individual parts or materials• built by or under the direction of university personnel Most fabrications are:• sponsor-funded• have a number of compliance requirements related to

acquisition and tracking• individual pieces of equipment in an assembled fabrication.

How will I know CIP items from other items on my NVP Report? Inv #: 928064 Elem#: 1_____ OrigFY: 2010 LatestFY: 2011 Screen: 1 of 6 Active SW: X Amount: 194,936.31 Description: FABRICATION CHARGES WORK IN PROGRESS FY1011______________ -------------------------------------------------------------------------- Owner Code: F Purchase code: F > Federal Title - Held in Trust Unit Code: 5100000 OFFICE OF ACCOUNTING Class Code: 090 Object Code: 1832 Acquisition Code/Date: 01 09/01/10 Source: CST Useful Life: Accum Depr: 194,936.31 Depr Expense: 194,936.31 Depr Value: 0.00 Loc Comp: 0 Site PRC_ Bldg 0190 Flr 01____ Rm A001______ Loc Notes: ____________________________________________________________ Missing or Stolen Code/Date: _ Found: Y 11/15/11 --------------------------------------------------------------------------- Inventory comments: More Inventory Comments: + Fabrication addition______________________________________________________

The Inventory Federal team will be following up to see whether the construction has been completed or is still in progress.

For any questions, please contact Federal Inventory [email protected],edu

The end product’s value is the sum of:• All services purchased and used in the fabrication process

Example: Welding, machine shop time• All items purchased and used in the fabrication processmust become a permanent part of the end product’s value Unless:• destroyed during testing • consumed in fabrication. Upon completion, a fabricated equipment must have:• an aggregate cost of $5,000 or more• a useful life greater than one year.

Step 1: Locate

Use the NVP report to locate assets identified as Not Found (need to locate)

If you can’t find an asset, look everywhere:

• offices/classrooms • labs • closets/storage areas • previous documentation/files • check off campus forms or logs• check Request for Removal of Equipment forms • ask or email coworkers to assist with locating

Step 1: Scan

When scanning barcodes during the inventory process, all equipment within any one room should be scanned. This will provide an update of the location to the actual equipment owners if another department owns it.

• Scanning an item will not change ownership.

• It will simply create a transaction line on NV1 Screen 3 for the inventory item showing the date and logon ID of the person who scanned the item.

Step 2: Scan Continued

While scanning, if an item is:

• Found • Continue scanning until you finish or have reached

approximately 200 items.• Arrange to bring the scanner in to upload data.• Repeat this process until all scanning is done.

• Not found—Notate this on the NVP report to further investigate or run a new NVP after downloading scanned results to see what still needs to be found.

Step 3: Reconcile

• Scanning takes care of most updates. Make notes on the NVP report printout of updates you need to make in *DEFINE or FRMS Departmental Inventory Portal

• Use either NVP or NV1 to make updates.• NVP sorts by unit code• NV1 sorts by inventory number (more options)• FRMS Departmental Inventory Portal

-new option

• No item’s status should be left blank.

Step 3: Reconcile continued

• Certifications will not be considered complete until all blanks are finalized with either “Found” or “Missing.”

• If an item is listed on your NVP but is no longer in your possession and has been cannibalized, traded-in or has left UT submit the IRR request for removal as soon as possible.

• Track your items year round and not just during the certification process.

How do I keep track of off-campus inventory items?

For items kept off campus, use the Respon EID field on the NV1 screen (2 ) in *DEFINE to list the item's custodian. Also include the off-campus location in the Loc Notes field. These fields can also be updated using the inventory web portal

NOTE: at the departmental level, sign-out logs are required to be kept. You may use the Equipment Located off Campus form if your department does not have an existing method for logging equipment.

Off-Campus Equipment

• Schedule a day for all off-campus equipment to be returned for scanning.

• Notify all staff who have equipment removed from campus to return those specific items on the scheduled date for inventory scanning.

• Get photo verification for any equipment that cannot be brought in for scanning

Updating in *DEFINE command NV1

The following fields may be updated by the department:

• serial number and item Respon EID: (screen 2)• Site• building locations • floor• room numbers • equipment status—found or missing

Please note -The location, status and responsible EID of an item can also be updated via the inventory web portal. Always keep the location current!

Are You Really Missing an Item?

Remember, every item counts.Before you mark that item as missing in *DEFINE NV1 or

Inventory web portal:• Make sure item is not being kept off campus, being

repaired, or overlooked in the initial scan.

• Check your department records and databases for possible transfers, cannibalizations, disposals, etc.

• If item is a computer or laptop check with your IT/LAN staff

Are You Really Missing an Item?

• If the item you cannot find is a vehicle, please file a police report with UTPD. They have been successful in locating missing vehicles that have been abandoned or were impounded. Fleet Management requires that the police be notified when a vehicle cannot be located.

• Check *DEFINE screen 3 to see who last found the item.

If you can’t locate the item, mark it as “missing,” but continue to look for it the next time you perform your physical inventory.

See *DPUSER instructions http://www.utexas.edu/business/accounting/pubs/txmail.pdf

Example of when looking up a login might be useful:•Screen 3 shows that a printer was last scanned by INCPJ in September 2012.

•You cannot find this printer, so you want to know who INCPJ is to follow up with him/her regarding this piece of equipment.

•If you follow the *DPUSER instructions, you should be able to get the following information:

_ JACOBSON,CECILIA INCPJ INVENTORY 471-8699

How and when would I look up a Login ID?

The item is in my unit code what choices do I have?

•If you want the equipment back, you can retrieve the item.

•Transfer ownership and tracking responsibilities by doing a CCART transfer.

Looking up a Login ID continued

Where on NV1 would I show an item as missing?

Inv #: A03917 Elem#: 1_____ OrigFY: 1988 LatestFY: 2010 Screen: 1 of 6 | Previous Inv Nbr: A03917 Active SW: X Amount: 7,350.25 | Description: EQUIPMENT STAGE DRAPERIES__________________________________ | ---------------------------------------------------------------------------------------------------------------------------- | Owner Code: U Purchase code: U | Unit Code: 5100000 OFFICE OF ACCOUNTING | Class Code: 132 Object Code: 1830 | Acquisition Code/Date: 03 01/12/89 Source: PRE | Useful Life: 84 Accum Depr: 7,350.25 | Depr Expense: 7,350.25 Depr Value: 0.00 | Loc Comp: 0 Site UTM_ Bldg 0297 Flr 01____ Rm 110_______ | Loc Notes: __________________________________________________________________ | Missing or Stolen Code/Date: _ Found: _ | ------------------------------------------------------------------------------------------------------------------------- | Inventory comments: More Inventory Comments: + | Transferred from AQ-INVENTORY 08/24/96_____________________________________ | Transaction comments: More Transaction Comments: | ____________________________________________________________________

You would mark the item by entering an ‘M’ for missing In *DEFINE. Or by selecting the missing status on the inventory web portal

View Percentage of Unfound Items

Unfound percentage includes items indicated as missing or left blank. Your NVP report has a percentage figure at the end of the listing.

1. To view your unit’s unfound percentages without running a report, go to *INPERC from the COMPASS screen.

2. Press ENTER and another screen will appear.

3. Type the first four digits of your unit code, and press ENTER.

View Percentage of Unfound ItemsComp Unit Unfound % Unfound Depr Amt Total Depr Amt As of Date/Time

---- ------- ----------- ---------------- -------------- ---------------

0 5100 99.49 % 150,147.27 150,906.50 12/08/03 00:48

0 5100000 99.49 % 150,147.27 150,906.50 12/08/03 00:48

You should not have at or above two percent unfound. If you do, there could be a penalty assessed.

The penalty would be assessed on the depreciated amount of any missing or stolen items with a disposal of 17, 18, 20 or 21.

Certification of DepartmentalAnnual Physical Inventory • Once you have completed all equipment scanning,

manual updates , and you have done due diligence to find all missing assets you are ready to certify.

• The certification form certifies that:• all items have been inventoried regardless of

depreciated value.• all items are accounted for within your

department and their status has been updated in *DEFINE or via the Inventory web portal.

• all removal paperwork has been submitted.

Step 4: Report• Download Certification Form from the Inventory Services website.

• The Certification Form must be completed and signed by:• department chair or equivalent• department inventory contact

• A current and complete NVP report must be included with the certification form

• Turn in your inventory certification before or by the designated due date

Relinquishing Inventory(Inventory Request for Removal)

• Transfer or Removal

• Type of Removals

• Three–Step process for removing

Before you discard an item please note!

Not everything requires a barcode tag; however, everything is an asset and is considered state property, even if it is not in *DEFINE or if it has a zero depreciated value.

Items should never be trashed! Send all obsolete items to Surplus 4500-999.

For equipment designated as federal or private, contact the Federal Inventory team at [email protected].

Is it a Transfer or Removal?

Will ownership of the property remain with the university?

Yes

•Use a CCART.

•This includes “donations” to other departments within UT

•Transfers to Surplus.

No

•Submit an inventory removal request to Inventory Services.

•Do this before the item leaves the university.

CCART transfer to Surplus Property - Unit (4500-999)

• When property exceeds its life expectancy and/or is no longer needed, send to Surplus.• CCART creates an NT1 Electronic Transfer doc.• Be sure to remove insurance. For questions, please

contact Risk Management at 471-3723 or e-mail [email protected].

• Erase all sensitive data from hard drives.

• Keep a list of outstanding NT1 document IDs until the transfer has been processed. Checking the routing.

When should an IRR (inventory request for removal) form be used?

IRR Removals do not include:

• transfers to surplus.

• transfers to other departments.

• “missing” items.

IRR Removals do include:

• cannibalization

• PI transfer

• stolen

• donations

• trade-in

• sale

• other

Type of Removal: Cannibalization

YES•Remove the parts needed•Send the excess to Surplus via CCART

NO•Dismantle the equipment•Submit barcode tag with the IRR form

Are parts left over?

Type of Removal: PI TransferDefinition: Principle Investigator (PI) leaves the universityand takes research equipment with him/her.

• Usually involves 26-accounts.

• 60 Days before the PI leaves, submit the IRR and letter of justification.

• A PI is never allowed to take equipment without prior approval from the property manager.

Type of Removal: Transfers to Non-State of TEXAS Agency

• submit the IRR and letter of justification for equipment going to out of state.

• Transfers to other State of Texas Agencies entities will require an Outgoing Transfer form or the Incoming Transfer form

Type of Removal: Stolen

• File police report immediately.

• Send completed IRR form to Inventory as soon as the police report has been obtained and should not exceed 48 hours after the incident

• Prepare letter of justification. Within the letter of justification, must note if the item stolen was or was not due to employee negligence. Also, if the item stolen is a computer or laptop, please answer these 2 questions in the letter of justification:   

1. Did the computer contain any Category I data?  2. Was the computer encrypted?

In addition, if item stolen is a computer or laptop, it must be reported on theInformation Security Office (ISO) Stolen Equipment Report form located here: https://security.utexas.edu/violation/iso_theft_form/

Type of Removal: Donation-outside of Surplus

Must be made to a qualifying agencies:• In-state require certificate of eligibility from the Texas

Facilities Commission.• Out-of-state:

• Similar documentation must be provided.• Only nontechnology items are allowed.

• Technology Equipment• State law mandates priority be made to.

• school districts• Texas correctional institutions

• Hard drives must be cleaned.• Verification of hard drive clean must accompany the

IRR form.

Type of Removal: Sale• Should go through Surplus

• Unless there are extenuating circumstances.• Departments can request that proceeds from the sale

be deposited into their account.

• Sales outside of Surplus• Submit an IRR and letter of justification.• Approvals must be granted before the sale is

conducted.• Include an agreement of sale, if available. Copy of

receipt of funds, such as copy of check, and document ID# of deposit into departmental account in *DEFINE.

Type of Removal: Other

• Returned to vendor• Damaged items or items returned to vendor for

some other reason.• Trade-ins

• Returned to the agency sponsoring a project• grants• military• contracts

• Anything that doesn’t fit previously covered• Submit as much documentation as possible

What is new about equipment traded-in?

All equipment being traded-in will now require an IRR Request for removal form even if the trade–in was annotated on the Purchase Order of new item.Include the following for the item being traded in:• inventory number• serial number• trade-in value or summary• Include copy of the P.O. of the new item.

Note:-the trade in value will be added as an element to the new item in *DEFINE

How will I see the trade-in value? Inv #: 845820 Elem#: 17____ OrigFY: 2010 LatestFY: 2011 Screen: 1 of 6 Active SW: X Amount: 35,000.00 Description: MASS SPECTROMETER_______________________________ -------------------------------------------------------------------------- Owner Code: U Purchase code: U Unit Code: 5100000 OFFICE OF ACCOUNTING Class Code: 538 Object Code: 1830 Acquisition Code/Date: 03 02/28/11 Source: TIN Useful Life: 120 Accum Depr: 2,625.00 Depr Expense: 2,625.00 Depr Value: 32,375.00 Loc Comp: 0 Site UTM_ Bldg 0740 Flr 04____ Rm 4.102_____ Loc Notes: ___________________________________________________ Missing or Stolen Code/Date: _ Found: _ --------------------------------------------------------------------------- Inventory comments: More Inventory Comments: + TRADE IN AMOUNT_____________________________________________

Step One: Removal must be Approved• Before disposing of university property, approval must

be granted by the property manager via Inventory Services.

Gather the information to Submit the IRR form that begins the Approval process

• Submit the inventory removal form and all necessary documentation to Inventory Services. The form is available at http://www.utexas.edu/business/accounting/forms/inv-remove.pdf

Step 2: Submit Inventory Removal Request Form

1. Department name and unit code:2. Equipment to be removed:Inventory # Description Purch. Date Cost Depr. Value

3. Reason why removal is requested:(see instructions on page 2 for further details)[ ] Stolen[ ] Cannibalization[ ] Donation[ ] Sale/Sealed Bid/Auction[ ] P.I. Transfer[ ] Trade-In[ ] Other: Please explain

4. Department Signatures: Approval Signatures:______________________________ _______________________Department Administrator/Head Inventory Supervisor______________________________ _______________________Department Inventory Contact Property Manager

* Please attach any supporting documentation and a letter of justification. When completed send this form and the supporting materials to Inventory, Office of Accounting, at campus mail code K5300.

Step Three: Removal from *DEFINE

Inventory Services will remove items from *DEFINE after:• documentation has been submitted.• sales receipts have been received.• the property manager has approved.

Note: Submit receipts to have the item removed from your inventory list within 30 days.

Inventory Services

University of Texas at AustinMain 132K5300Phone: 512-471-3838Fax: 512-471-1651

Assistance hours: 10 a.m.-noon & 2-4 [email protected] [email protected]@austin.utexas.edu

http://www.utexas.edu/business/accounting/in/