LEGISLATIVE AUDITORS WILL BE EVALUATING / TESTING /
TRACKING NON-CAPITAL ASSETS AT THE UNIVERSITY OF UTAH
For Your Information:
The Legislative Auditors for the State Of Utah will “soon” be returning to our campus at the University of Utah. The specific dates that these representatives will be on campus is currently not known, but they could arrive at any time.
The auditors are interested in the level of policy compliance (across all of our campus departments).
What will they be investigating?
The auditors will be reviewing your department’s compliance with applicable university policies for tracking non-capital assets (having an initial purchase cost between $1,000 and $4,999).
The auditors will be reviewing the documentation in your department for these assets (i.e. – do you have a “List”?) and they will “reconcile” your individual detailed lists of these items to the numbered “Yellow Inventory Tags” that (by policy) are to be applied to these items (the items are “tagged” primarily for insurance purposes).
Your Department may be closely scrutinized by the auditors.
Expectations / Requirements are:
- The University (including its departments) will maintain inventory records on all property, including real property, which has an acquisition or donated value of $1,000 or more; has a useful life in excess of one year; and meets any of the following criteria:
- University owned property
- Government owned property
- Loaned property that is borrowed by the University of Utah from another university or from an off-campus entity
- University or Government property, for which the University of Utah is accountable, that is on loan to another university or off-campus entity
- When the purchase of Non-Capital Equipment has been recorded in the university financial system and records, the Department will attach the appropriate “Inventory Tag” (where feasible) to the equipment and maintain records of the location and other pertinent information.
What should you do to prepare before the auditors come to your department?
You should complete your own “run through”:
- Read the applicable university policies (see Policy 3–041). The policies should be “fresh” in your mind. Determine: Are you consistent with our university Policies?
- Read the related university Procedure P3–041A.
- Read additional guidance in a 2007 memo found at university Rule R3–040B.
- Review these forms: a) Non-Capital Inventory Form; b) Off Campus Authorization Form; c) Tag Request Form; and d) Retirement/Transfer Form.
- Is your department “in compliance” with the policies? (Are you taking a physical inventory of these items? See Policy 3–041; Section III. E. )
- Check your procedures and documentation.
What happens if your department is deemed to be “non-compliant”?
The university will be noted and reported publicly as “non-compliant”.
The University of Utah should be COMPLIANT.
Please do YOUR part NOW to achieve that objective.
ADDITIONAL REMINDER REGARDING CAPITAL EQUIPMENT IN YOUR DEPARTMENT (Items initially $5,000 or more)
The detailed “Annual Physical Inventory” Report for Capital Items ($5,000 or MORE “Initial Value”) in your Department MUST be completed and TIMELY RETURNED to the University’s PROPERTY ACCOUNTING DEPARTMENT.
This “Reporting Procedure” requires that your Department review and UPDATE the lists provided. UPDATE the following data:
- Location (Room Number)
- Account for all “RED TAGGED” items on your “List”
- Use – Is there a current, active use for the item?
- Is this item related to RESEARCH at the university?
- Ensure that all “Research Equipment” is in the applicable ROOM (where it should be, so that the Equipment “MATCHES” the Space usage). Research equipment should be housed in space where Research is conducted.