Equipment Management

Physical Inventories

Requirements

University and contracting/granting agencies' regulations require campus departments to conduct periodic physical inventories of assigned equipment and to verify and update departmental inventorial equipment records at least once every two years. In order to satisfy this requirement, Equipment Management mails a Physical Inventory -the Departmental Equipment Registry (EQ920) — to each department, with instructions for conducting the inventory. A verified and annotated EQ920 signed by the Department Chair/Director must be returned to Equipment Management by the designated date. Departments are advised to retain a copy of the annotated EQ920 for their own records.

Helpful Hint: Completion of the Physical Inventory is much easier if your department continually maintains and updates its equipment records:
Upon receipt of inventorial equipment, provide Equipment Management with the following information:
Manufacturer and model number *
Serial number
Building and room numbers *
User code *

* if not provided on the Purchase Requisition, or if changed either via On-Line Inventory Access or completion of a Tag Flag.

Promptly inform Equipment Management of any off-campus use, transfer, loan, loss, theft or destruction of inventorial equipment through the on-line EIMR process, or via an Equipment Inventory Modification Request (EIMR), and any disposal of surplus inventorial property via an Excess and Surplus Property Disposal (ESPD) form.

Timeline

In accordance with a timeline suggested by the U.C. Office of the President, as part of its implementation of Governmental Accounting Standards Board (GASB) requirements for the reporting of the value of all University capital assets, Equipment Management will be conducting the physical inventory process according to the following general schedule:

  1. January: Equipment Management mails EQ920 to departments to complete Physical Inventory
  2. June 30: Departmental deadline for return of completed and signed EQ920s to Equipment Management
  3. July 1-December 31: Equipment Management follows up with departments; inputs data into the Capital Assets Tracking System (CATS), and processes all EIMR and ESPD forms that were submitted along with completed EQ920s
  4. December 31: After all updates are completed, Equipment Management submits total campus inventory file to Office of the President

For the purposes of conducting the Physical Inventory, campus departments have been divided into two groups of roughly equal numbers of assets (custody codes 1-4000 and 4001-6000), each group completing a Physical Inventory in alternating years. In this manner, individual departments complete a Physical Inventory every two years, while Equipment Management conducts the process on an annual basis, maximizing its resources and ability to respond to department questions and requests for assistance while maintaining its other, essential functions.

Department Equipment Registry (EQ920)

The EQ920 is sorted by:

  1. department custody code
  2. the fund number under which the equipment was acquired *
  3. property number (please note that property numbers beginning with "00" and "01" sort before all older ones).

    * All acquisitions made with Federal or other Extramuralfunds are recorded under that fund number. All other fund numbers are designated by either "00" (General Funds and their equivalent) or "19" (Service & Auxiliary Enterprises). If split funding occurs, the equipment is tracked by the Federal fund number, regardless of the amount of the split. If the Federal contract or grant has expired, the custody remains the same.

Only inventorial equipment with a unit value of $5,000 or more appears on the EQ920, with the exception of (a) firearms and (b) equipment to which the University does not hold title and which was acquired before the increase in the inventorial equipment threshold from $1,500 to $5,000 on July 1, 2004.

IMPORTANT NOTE

For the purposes of conducting physical inventories, most departments’ inventories are now divided into two categories of inventorial equipment:

  1. ASSETS THAT MUST BE PHYSICALLY INVENTORIED: all assets with a value of $5,000 or greater, and firearms and non-UC title equipment, regardless of unit value. Office of the President has decided that only these assets require a physical inventory and has waived the requirement for the following group.
  2. ASSETS THAT DO NOT NEED TO BE PHYSICALLY INVENTORIED: all UC-title assets that are not yet fully-depreciated and have not yet been included on a write-off list provided by Office of the President.

Because the write-off process will not be complete for several years, most departments will continue to have UC-title assets with a value of less than $5,000 on inventory. Initially, at least, the number of these assets will usually exceed that of assets with a value of $5,000 or greater.

While no physical inventory is required for assets with a value of less than $5,000, their disposal should continue to be reported to Equipment Management: departments should not passively wait for them to drop off inventory via the write-off process. Assets with a value of less than $5,000 continue to be included in the University’s financial depreciation calculations until fully depreciated; therefore, disposed assets should be removed from inventory AT THE TIME OF DISPOSAL.

Each year, several weeks after the official EQ920s have been distributed to campus departments, Equipment Management will distribute, FOR INFORMATION PURPOSES ONLY, separate lists of UC-title assets under $5,000. These lists DO NOT have to be returned to Equipment Management and will be provided solely to remind departments of the “other” assets still on their inventory whose disposal should be recorded in a timely fashion.

Because of the dual-tier nature of departments’ inventories for the next several years, the Inventory Report that is available to departments through the Data Warehouse (http://wa.isc.ucsb.edu) allows departments to choose whether they wish to print their entire inventory (both categories, just the list of assets requiring physical inventory, or just the assets not requiring physical inventory). A prompt allows departments to make the choice (it will not appear if a department has equipment in only one of the two categories). If you have not been set up to access equipment data through the Data Warehouse, contact Mary Wenzel (x8882) or Yen Tran (x5533) in IS&C for assistance.