Property Accounting Policies and Procedures

Office of Accounting Services

Accounting Services

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Office of Accounting Services
Policies and Procedures

PROPERTY ACCOUNTING POLICIES AND PROCEDURES

Policy 21-10-10.1   Introduction
Policy 21-10-10.2   Inventoried Equipment
Procedure 21-10-10.2P Property Decals
Policy 21-10-10.3   Equipment Audits
Policy 21-10-10.4   Items Missing on Equipment Audits
Policy 21-10-10.5 Off-Campus Use of Equipment
Policy 21-10-11.1   Moving of Furniture and Equipment
Procedure 21-10-11.1P Moving of Furniture and Equipment
Policy 21-10-11.2 Movement of Equipment Provided by the Georgia State Financing and Investment Commission (GSFIC)
Policy 21-10-12.1   Disposal of University Equipment
Policy 21-10-13.1   State of Georgia Surplus Property Warehouse
Policy 21-10-13.1P State of Georgia Surplus Property Warehouse
Policy 21-10-14.1   Computerized Inventory System
Policy 21-10-15.1   Non-Cash Gifts to Georgia State University (GSU Foundation)

Policy 21-10-10.1
Introduction

Georgia State University has implemented procedures and business processes that are in compliance with the most recent version of the Capital Asset Guide for the University System of Georgia. The Capital Asset Guide is comprised primarily of two categories: 1) Capital Asset Definitions and Guidelines and 2) Capital Asset Categories.
The Asset Management module of the People Soft Accounting system is used to support accounting and reporting activities of capitalized assets at Georgia State University. A guide prescribing useful lives for capitalized assets can be found in the Appendix of this document.

In accordance with Unannotated Georgia Code Section 50-16-161.1, Georgia State University maintains non-capitalized equipment inventory records on any item which meet the following criteria:

Any item which is basically non-consumable and non-expendable in nature, including, but not limited to, motor vehicles, mechanized; non-mechanized equipment, office equipment, appliances and
Any item with an estimated usable life expectancy of three or more years and an acquisition cost of $3,000 or more; or
Any item or items which an agency determines should be included in its personal property inventory even though it fails to meet the criteria of paragraph (1) or (2).

In order to update the Asset Management with cost acquisition data for furniture, equipment and computers, the cost history table must be populated with:

Georgia State University Asset Identification Number;
Description of Equipment;
Manufacturer's Name (If Applicable);
Model Number of Equipment (If Applicable);
Serial Number of Equipment (If Applicable);
Purchase Order Number (If Applicable);
School, Department, Building and Room Location Codes;
Arrival Date of Equipment on Campus;
Acquisition Date; and
Acquisition Cost of Equipment

Please note! The Property Accounting Office works closely with but is not the same as the Property Control Office. The following policies and procedures explain the role of Property Accounting, if any, in various routine functions related to GSU assets/property.

Policy 21-10-10.2
Inventoried Equipment

Central Receiving in the office of Business Services assumes responsibility for receiving, decaling and delivering furniture and equipment to Colleges/Departments here at the University. Receiving activities include:

Completing a visual inspection of the condition of each item received (NOTE: A MORE DETAILED INSPECTION IS MADE FOR CONCEALED DAMAGE AND SHORTAGES BY RECEIVING COLLEGE/DEPARTMENT);
Comparing items received to the description on the Purchase Order;
Decaling all furniture and equipment with an acquisition cost of $3,000 or more;
Preparing the shipment for delivery to the requesting department;
Obtaining the signature from the Property Coordinator/Designated Representative for receipt of delivered items; and
Shipping items being returned to vendors and those being sent for repair.

Please visit the Business Services website for detailed information on Property Control policies and procedures.

Property Accounting in the office of Accounting Services is responsible for the accountability of furniture and equipment with an acquisition cost of $3,000 or more after it has arrived on the Georgia State University campus. Accounting activities include:

Maintaining PeopleSoft Asset Management System Data base with acquisitions, relocations, disposals and upgrades;
Conducting yearly physical inventories; and
Reconciling the General Ledger accounting records to the subsidiary inventory records.

Procedure 21-10-10.2P
Property Decals

Property decals are attached to all furniture and equipment with an acquisition cost of $3,000 or more. The property decals are bar-coded and include a pre-printed Georgia State University identification number. As a rule, the property decal is attached on the right side of equipment and furniture. Whenever possible, the university's Receiving Department will try to place the property decal in an inconspicuous place so that it will not detract from the equipment's appearance. Property Accounting updates financial records for all decaled assets, and adds new assets’ records after Central Receiving has processed the items.

Policy 21-10-10.3
Equipment Audits

All furniture and equipment with an acquisition cost of $3,000 or more and owned by Georgia State University must be inventoried at least once each fiscal year. The Georgia State University Property Accounting Office coordinates an annual physical inspection of all assets in the capital ledger. The Property Accounting Office schedules an annual sample verification of the small value purchases ($3,000 - $4,999) with University Auditing and Advisory Services. All assets with a value of $5,000 or more are individually inventoried each year by Property Accounting.

Policy 21-10-10.4
Items Missing on Equipment Audits

Property Accounting strives to work with each department to locate all Georgia State University decaled items. If an item cannot be located, University Policy requests the following steps be followed:

Missing - At the end of thirty days from the date of the formal audit report, the equipment must be located, seen and verified, or the equipment will be marked as "MISSING" in the property accounting records. Such transactions require the College or Department to complete and submit a "Missing Property Form" to the Property Accounting Manager. If a police report was filed, a copy should be provided along with the "Missing Property Form."

The missing item must remain on the inventory records for at least two (2) years before it can be deleted from the system. When and if a missing asset is located, Property Accounting must be notified immediately.
Stolen - A statement saying that the equipment is stolen must be issued and signed by the department head. The statement should be addressed to Georgia State University Chief of Police. Copies should be sent to the Property Accounting Manager and to the appropriate Dean or Vice President. Theft reports should be reported immediately after determining that a theft has occurred. The stolen item must remain on the inventory records for at least two (2) years before it can be deleted from the system.

Policy 21-10-10.5
Off-Campus Use of Equipment

Items that are being removed from campus for a period of one (1) month or more will be reported on the Off-Campus Equipment Use Permit Form. Items that are being removed from campus for less than one (1) month will be reported on the Safety & Risk Management Transient State Property form, to ensure that items are adequately insured. This form is electronic/interactive and can be found on the Georgia State University Web Site at http://www2.gsu.edu/~wwwspc/Forms/index.htm. The Transient State Property form has two (2) purposes; 1) to record the removal of item(s) from campus and 2) to record the return of item(s) to campus.

In order to ensure that the movement of laptop computers is properly reported, all laptops that are permanently assigned to an individual, regardless of whether they travel to and from campus on a daily basis, are to be assigned off-campus via the Off-Campus Equipment Use Permit form. This also includes laptop computers not permanently assigned to an individual but requested for a period for one (1) month or more. All other types of usage of laptop computers will be handled through the use of the Safety & Risk Management Transient State Property form. All approvals will expire on August 31 and must be renewed effective September 1 yearly.

Policy 21-10-11.1

Moving of Furniture and Equipment
The Physical Plant Department coordinates the movement of all furniture and equipment at Georgia State University.

The requesting College/Department will notify the Work Management Center of items that need to be moved. If the item to be moved does not have a decal, the requesting College/Department will complete only the Move Form for the Work Management Center’s use. If the item has a decal, the requesting College/Department will complete a Request for Transfer - Decaled Item form and attach it to the Move Form that is forwarded to the Work Management Center. For questions about moves, please call the Facilities Management Customer Service Center at: (404) 651-0700 or visit their website.
After the move is complete, the Physical Plant will forward the Request for Transfer - Decaled Item form to the Property Accounting Office for any assets over $3,000 so that the new location of the decaled furniture or equipment will be entered into the computerized inventory system. No furniture or equipment will be moved without the proper paperwork. Move requests should not be sent directly to Accounting Services by departments. Only if a College/Department itself moves decaled furniture or equipment valued at $3,000 or more, should they complete the Request for Transfer - Decaled Item form, write "already moved" across the top and forward the form directly to the Property Accounting Office.

Policy 21-10-11.2
Movement of Equipment Provided by the Georgia State Financing and Investment Commission (GSFIC)

When a new building is constructed for Georgia State University, the Georgia State Financing and Investment Commission (GSFIC) coordinates all aspects of the construction. When construction is complete, the GSFIC transfers ownership to the Board of Regents/Georgia State University in accordance with BOR Procedural Directive entitled Transfer of Assets from GSFIC.

Policy 21-10-12.1
Disposal of University Equipment

Business Services coordinates the final disposition of all University owned equipment. Requests to surplus assets should be submitted on the Surplus Transfer Form. The Physical Plant Department will take all surplus furniture and equipment to the Warehouse. Warehouse personnel will decide what items are trashed and what items will be held for future use by other Georgia State University Departments, State Agencies or subsequently made available for public sale. If any decaled items are trashed upon receipt in the Warehouse, the Property Accounting Office will be notified so that the inventory records can be adjusted. Quarterly, the Warehouse will hold a sale for all items that have not been trashed. Prior to the quarterly sale, Business Services will arrange an Open House where Georgia State University Departments will be able to visit the Warehouse to view the furniture and equipment and transfer any items back to their departments. Business Services will be responsible for completing the appropriate Department of Administrative Services State Surplus Property paperwork and notifying the Property Accounting Office of any decaled items that were sold.

Georgia State University employees cannot bid on any items. Any revenue generated, less administrative cost for selling the item, is returned from Department of Administrative Services State Surplus Property to Georgia State University.

Department of Administrative Services cannot sell items purchased with Georgia State University funds to an individual, company, or private organization except through public auction.

The Georgia State University Purchasing Department and Department of Administrative Services State Surplus Property may trade in some office machines on the purchase of new equipment by departments, with prior approval. Contact the Purchasing Department for specific details.

Policy 21-10-13.1
State of Georgia Surplus Property Warehouse

The State of Georgia Department of Administrative Services operates a warehouse consisting of excess supplies and equipment transferred from other state agencies and the Department of Defense. Some items that have been transferred from state agencies may be selected by authorized personnel at no cost to the University. All items which have been transferred from the Department of Defense must be purchased. The cost to purchase surplus items is nominal. This purchase is charged to the supply budget of the department purchasing the item.

To be authorized to visit and select or purchase from the State of Georgia Surplus Property Warehouse, a written request must be made and forwarded to the Director of Business Services by your department head and should include:

The name of the person to be authorized
Requesting department
Reason for utilizing surplus materials

Authorization entitles an individual to visit and select or purchase on behalf of the University from the State of Georgia Surplus Property Warehouse. All items selected or purchased must be utilized for Georgia State University sponsored activities only.
DOAS Surplus Property in October 2006 began offering surplus property to the public in a "retail" environment. All three service centers are currently open to the public Monday - Friday from 8:30 to 4:00, and Thursday evenings until 6:00. For the most up-to-date information on the retail surplus property program, the three retail store locations, and store hours, visit www.surplusproperty.doas.ga.gov

Procedure 21-10-13.1P
State of Georgia Surplus Property Warehouse

Persons who receive authorization to visit the State of Georgia Surplus Property Warehouse and purchase items, will be given a green copy of the issue sheet for the items purchased. Please forward this green copy to the Director of Business Services at Georgia State University for

coordination of payment of this obligation. For equipment, the green copy is the invoice for payment of the obligation. The Property Accounting Office is not a participant in this process.

Policy 21-10-14.1
Computerized Inventory System

All furniture and equipment with an acquisition cost of $3,000 or more are stored on a computerized file to provide information reports about Georgia State University decaled equipment. Property Accounting provides, upon request, a computerized listing of all equipment charged to a department.

Policy 21-10-15.1
Non-Cash Gifts to Georgia State University (GSU Foundation)

The Georgia State University Foundation (GSU Foundation) is the only entity at Georgia State University that can receive gifts form individuals and companies. If a College/Department is offered a non-cash gift, approval from GSU Foundation is needed before the gift can be accepted. In order to obtain approval, forward a memorandum to the GSU Foundation and include the following information:

Complete description of each item including model, manufacturer, serial number;
Name, address and social security number of donor and spouse's name if giving jointly;
Circumstances surrounding the gift;
Location where equipment is to be placed;
Estimated current fair market value and attach independent appraisal for gifts greater than $5,000; and
Tentative date of gift.

If acceptance of the gift is approved, The GSU Foundation will send an acknowledgment letter to the donor. If applicable, the GSU Foundation will complete Form 8283 for the Internal Revenue Service. The GSU Foundation will advise the Property Accounting Office of any items that need to be decaled.