Guidelines for Inventory Control of Capitalized Equipment
Effective: July 1, 1997
Revised: February 9, 2017
Related Policy, Related Procedure
Tagging University Equipment:
The Fixed Assets Manager issues an equipment decal tag and information sheet for all single-item equipment purchase orders equal to or greater than $5,000. The decal is then forwarded to the department that received the equipment. Upon receipt, the department equipment liaison reviews the decal information sheet for accuracy. The department liaison is required to complete any missing information, attach the decal to the equipment listed on the decal information sheet and return the decal information sheet to the Fixed Assets Manager, Accounting Services, Administrative Services Building.
All equipment liaisons will have secure access to the AssetWorks Inventory Management (AiM) system. The liaison will have the ability to view all relevant information for equipment equal to or greater than $5,000. Contact the Fixed Assets Manager for training/access to AiM.
If a decal cannot be attached, write the decal number on the equipment with a permanent marker if it is not suitable to apply the decal number. Place the decal in a secure file with a notation as to why you could not decal the item and place this same notation on the decal information sheet to be sent to the Fixed Assets Manager.
Annual Inventory of Equipment:
Once a year, all departmental liaisons will receive PDF/excel copies of their detailed equipment inventory from their Budget Center Business Officer. The department equipment liaison will be contacted by the Fixed Assets division for a convenient time to assist Fixed Assets personnel with a walk-through to perform the annual inventory of departmental equipment, in which the equipment liaison and/or designated representative will certify the location and usage of equipment. After completion of the walk-through, departmental liaison or designated representative sign the Annual Equipment Inventory Certification form verifying that the inventory has been completed. The Fixed Assets Manager will update the inventory details and send an amended inventory listing along with a copy of the departmental signed Annual Equipment Inventory Certification form to the appropriate Business Office for their records after all departments within the Budget Center are completed.
Some departments may need to perform the physical inventory independently due to the equipment being outside the State of South Carolina or if the department is located off campus and has minimal equipment valued over $5,000. Fixed Assets personnel will contact these departments by phone or email and send them the fiscal year inventory listing. The Fixed Assets personnel will request the liaison or designated representative to perform the inventory within a specified time frame and return the signed form to the Fixed Assets Manager.
All equipment should be reviewed for functionality and utilization. If equipment is no longer needed and/or used, please take appropriate action for transfer, surplus or disposal (See Guidelines for Replacement, Transfer, Disposal or Surplus of Equipment below). Surprise inventory checks will be performed by the internal auditors of the university.
Guidelines for Replacement, Transfer, Disposal or Surplus of Equipment:
- Equipment is returned to a company for repairs and the company replaces it with a new piece of equipment. Notify the Fixed Assets Manager, Accounting Services, Administrative Services Building of the return/replacement along with all replacement information including the new serial number and model number. Replaced equipment will retain the same decal number as the returned item. If possible, remove the existing decal tag and place on the replacement item or write the decal number on the replacement item with a permanent marker.
- Equipment is moved to a different location. Notify the Fixed Assets Manager, Accounting Services, Administrative Services Building of the change in location.
- Equipment is surplused. When an item becomes obsolete or unusable, complete a CUBO 206 form and forward it to Surplus Property, Administrative Services Building.
- Equipment is traded-in. Complete a CUBO 206 form and a Trade-In Document form. Attach to the Buyways purchase order. NOTE: A Bill of Sale may be substituted in lieu of a CUBO 206 for vehicles.
- Equipment is stolen. Campus Security should be notified so that an investigation or other appropriate action may be taken. Complete a CUBO 206 form, attach a copy of the security report and forward it to Surplus Property, Administrative Services Building.
- Equipment is transferred to another department. Complete a CUBO 206 form, have it signed by both the originating and receiving department heads and then forward the form to Surplus Property, Administrative Services Building.
- Equipment is transferred to another state. Equipment cannot be transferred or sold out of state unless the following conditions are met:
- The equipment must be bought with money from a current ACTIVE grant (fund 20 account).
- The Principle Investigator (PI) needs the equipment to continue with his/her research on an active grant provided the grant is transferred to the same out of state entity as the equipment.
- Approval must be obtained from the State Surplus office in Columbia. This can be processed through the Clemson Purchasing department.
- Equipment is missing. If equipment cannot be located, an extensive search must be conducted to find it. If the equipment still cannot be found, a CUBO 206 must be completed and signed by the department head along with a letter stating that a search has been done and explaining as to why they feel it should be removed from the university's inventory. The completed CUBO 206 and a copy of the documentation is forwarded to Surplus Property, Administrative Services Building.
NOTE: Equipment bought for the same research on a previous inactive grant cannot be transferred.
- Equipment is cannibalized. Equipment that is equal to or greater than $5,000 and is obsolete or inoperable may be cannibalized and the parts used to repair or rebuild other equipment. Departments may keep the cannibalized equipment within their division but a completed CUBO 206 form is required to be sent to Surplus Property, Administrative Services Building, along with the inventory tag. Surplus Property will forward a signed copy of the CUBO 206 form to the Fixed Assets Manager, Accounting Services, Administrative Services Building.
- Federal equipment is cannibalized. Cannibalization of federal equipment (equipment that is titled federal or government furnished) requires written approval from the appropriate agency. A University CUBO 206 form is required to be sent to Surplus Property, Administrative Services Building, along with the inventory tag, and federal documentation approving the cannibalization. Surplus Property will forward a signed copy of the completed CUBO 206 to the Fixed Assets Manager, Accounting Services, Administrative Services Building, when the equipment is equal to or greater than $5,000.