TRACKING NON-CAPITAL ASSETS AT THE UNIVERSITY OF UTAH

This message is intended for Business Unit 01 Activities and Projects. (Not Hospital Accounts)

On November 17, 2017, we notified campus that the State of Utah Legislative Auditors will be evaluating, testing and tracking the non-capital assets at the University of Utah (please refer to that FS Post for more details; Audit of Non-Capital Assets.) The Legislative auditors have now announced their visit; they will be on our campus on Monday and Tuesday, February 26 and 27, 2018. Planning is underway to coordinate their work. Please ensure that you are prepared for their visit to your department.

The auditors will be investigating compliance with our applicable university policies for tracking non-capital assets (having an initial purchase cost between $1,000 and $4,999). The Account Code for these items range from 61400 to 61499. You should also carefully review the expenses in your Account Code 62500 (“Office Supplies”) and make any corrections, if necessary.

We remind you that your department should have a detailed “List” of these assets and that numbered “Yellow Inventory Tags” should be affixed to each of those items on your “List”.

We encourage you to evaluate the appropriateness of also tracking “certain” other purchased items in your department, with an initial cost of less than $1,000. In particular, your department may have purchased various mobile devices (less than $1,000 each) that currently store confidential data, including personally identifiable information. Examples of mobile devices are cell phones, laptops, and tablets.

President David Pershing and John Nixon (VP for Administrative Services) sent the campus a January 25, 2018 e-mail message, reminding each of us that, every university faculty and staff member is responsible to safeguard the university’s physical and financial assets, ensuring those resources are used only for lawful and authorized purposes, and being alert to possible exposures, errors and irregularities. (See Rule 3-003B) In addition, it is imperative that each of you, particularly principal investigators and those in leadership and management positions, understand and faithfully execute your stewardship responsibilities. Finally, The university has well-established standards and guidelines in this area. Refer to the letter on this subject here, describing basic requirements and offering some precautions. We urge each of you to review and conscientiously follow these guidelines. We also ask that supervisory personnel periodically refer their employees to this notice.

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:

1. 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:
   1. University owned property
   2. Government owned property
   3. Loaned property that is borrowed by the University of Utah from another university or from an off-campus entity
   4. University or Government property, for which the University of Utah is accountable, that is on loan to another university or off-campus entity
2. 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”:

1. 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?
2. Read the related university Procedure P3–041A.
3. Read additional guidance in a 2007 memo found at university Rule R3–040B.
4. Review these forms: a) Non-Capital Inventory Form; b) Off Campus Authorization Form; c) Tag Request Form; and d) Retirement/Transfer Form.
5. Is your department “in compliance” with the policies? (Are you taking a physical inventory of these items? See Policy 3–041; Section III. E. )
6. 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:

1. Location (Room Number)
2. Account for all “RED TAGGED” items on your “List”
3. Use – Is there a current, active use for the item?
4. Is this item related to RESEARCH at the university?
5. 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.

Return your Updated, Signed Report(s) to Property Accounting on a Timely Basis.