Index and Glossary – I
- Income Accounting
- Independent Contractor
- Insurable Equipment
- Intangible Assets
- Interface File Transfer
- Internal Controls
- Inventory Controller
- Inventory Forms
- Inventory OrgID Lookup
- Inventory Procedures
- IRS Forms
Discussion: The Financial & Business Services department responsible for processing University income.
Discussion: The IRS characterizes independent contractors by determining the relationship between business and workers according to the following: 1) behavioral control, 2) financial control and, 3) relationship. Behavioral control refers to whether the business has a right to direct or control how the work is done and through instructions, training and other means. Financial control references if the business has a right to direct or control the financial and business aspects of the worker’s job. Finally, how the worker and the business organization perceive their relationship is examined.
University personnel should complete the Employee/Independent Contractor Checklist when contemplating the use of an individual as an independent contractor. Instructions precede the checklist which will help departments follow appropriate steps to contract with an Independent Contractor.
| Tax Services | Policy 3-111 | Employee/Independent Contractor Classification Checklist | Independent Contractor Services Agreement | Grants and Contracts Accounting | Ask Us Tax Services | Ask Us Accounts Payable |
Discussion: This term was used extensively in prior procedures and guidelines as being synonymous with the term “noncapital equipment.” In fact, all property and equipment with an original value of $1,000 and greater is insurable – both capital and noncapital.
| Policy 3-040 Property Accounting | Policy 3-041 Non Capital Equipment | Basic Inventory Information | Security and Accountability for University Equipment | Grants Management Essentials Training | Ask Us Property |
Discussion: Intangible assets possess three characteristics: lack of physical substance, an initial useful life in excess of one year, and nonfinancial in nature. As such, financial assets such as cash, investments, receivables and prepayments would fall outside the definition of intangibles.
Interface File Transfer:
Discussion: The process whereby departments deposit electronic journal files (of a specific format) to an authorized directory which will be used by General Accounting to create the journals in the accounting system. This process is generally used only by departments billing for goods or services provided to other campus users.
Discussion: The University uses the Committee of Sponsoring Organizations (COSO) definition of internal controls. COSO defines internal control as a process, effected by an entity’s board of directors, management and other personnel. Internal controls are designed to provide reasonable assurance regarding the achievement of objectives in effectiveness and efficiency of operations, reliability of financial reporting, and compliance with applicable laws and regulations. Internal control is a process.
It is a means to an end, not an end in itself.
Examples of internal controls include:
- Keeping credit card and other sensitive data secured
- Safeguarding physical assets
- Reconciling various accounts and activities
- Following documented cash handling procedures
- Assuring that transactions are appropriate and for a valid business purposes
- Segregating duties such that no one person has full control over a business process. That is, no one individual should have the ability to initiate a transaction, approve a transaction, reconcile the account, or have physical custody of an asset such as cash deposits.
- Monthly review of our management reports to ensure transactions are appropriate and documented
Discussion: The person within each University department that is responsible for the proper tagging and tracking of the department’s capital assets. The inventory controller ensures each newly acquired capital asset is tagged, all capital equipment lists are completed and returned to Property Accounting in a timely manner, and the yearly capital equipment inventory and lost equipment write-off (if necessary)are completed within the proper timeframe.
- Non-Capital Inventory Form – Form used for equipment with original value of $1,000 to $4,999. Non-Capital inventory must be completed every other year for the first five years of ownership. Departments are encouraged to conduct inventory as often as is determined to be best practice in their areas.
- Capital Inventory Form A – This form is used by inventory controllers to identify capital assets found without proper tags affixed and not listed on the yearly inventory. Inventory controllers complete the form and return it with their yearly inventory so that Property Accounting can determine why the listed asset is not on the inventory, add it to the inventory if necessary, and send an asset tag for the newly identified asset. Annual inventory is required for Capital Equipment.
- Capital Inventory Form B – This form is used by inventory controllers to identify capital assets found with proper tags affixed and not listed on the yearly inventory. Inventory controllers complete the form and return it with their yearly inventory so that Property Accounting can determine why the listed asset is not on the inventory, and add it to the inventory if necessary. Annual inventory is required for Capital Equipment.
Inventory OrgID Lookup:
Discussion: A link in the CIS Resources and Information section, Property Accounting sub-section, that provides Org ID, Organization (Department) Name, and Responsible Person information ordered by either Org ID or Organization Name.
Discussion: Procedures vary based upon the value of the equipment.
- Capital Inventory: $5,000 +
- Annual Inventory is required. See Capital Inventory Instructions.
- Non-Capital Inventory: $1,000 – $4,999
- Biennial Inventory is required for Non-Capital equipment in service for 5 years or less. See Non-Capital Inventory Instructions.
Generally, inventory procedures imply verification of asset condition, location, and manufacturer information, affixing the proper Fiscal Year sticker to each asset listed in either the yearly Capital inventory, or as required in biennial Non-Capital inventory procedures, including the return of completed inventory forms to Property Accounting within the allotted timeframe.
| Basic Inventory Information | Annual Capital Inventory Instructions | Capital Inventory Form A | Capital Inventory Form B | Non-Capital Inventory Instructions | Non-Capital Inventory Form | Ask Us Property Accounting |
Discussion: Click on the name of the form to link to additional information: