SUSOE - Capital Asset Management

ERA Capital Asset Management

Quick Reference

Version 0.8 - 1/30/97

This quick reference should lead you through the common processes for managing capital assets (property) in the School of Engineering. Summary information is provided about what action should be taken by the different parties involved in the management of university capital assets. For additional information or other assistance please contact the SECA office.

Index

Note:

This is an "in progress" document. Please forward suggestions and comments to Webmaster. Updates will be posted here. School departments will be notified of substantial changes via email.

Produced by the School of Engineering Capital Assets Office (SECA).

Go to Property Adminstration

Participants in the World of Capital Assets

Below are definitions of commonly used terms in this quick reference.

Requester -: The "requested by" person named on purchase requisition; may be a faculty member, research associate, staff member, or student.
Originator -: The person who creates the purchase requisition.
Custodian -: The person responsible for the capital asset, must be faculty or continuing staff. Students, visitors and staff on term appointments are not eligible.
Principal Investigator -: Responsible for sponsored projects.
Departmental Administrator -: Responsible for administration within department.
UPA University Property Administration -: Office responsible for all university capital assets and EIS/CAMS on-line systems.
DPA or Department Property Administrator -: SECA DPAs are responsible for all School capital assets. Unit DPAs support SECA.
SoE Research Administrators -: ERA staff who support grant & contract management for PIs in Engineering.
SoE Shipping & Receiving -: ERA staff who provide those services.
Local Receiving (CIS, SCPD) -: Some large operating units have their own receiving operation.
Internal Audit -: People who check our processes for accuracy and compliance.
Equipment Inventory Group -: People who manage the inventory process for the university.
SECA -: School of Engineering Capital Assets Office; responsible for ensuring compliance with sponsor and Stanford capital asset policies; responsible for operating and improving all school property processes; serves as field office for University Property Administration.

Capital Asset Requisition Review Process

Purchase requisition are reviewed for compliance and proper accounting information.

Originator: Creates requisition.; Specify delivery destination: SoE Receiving or CIS Receiving or SCPD (SITN) Receiving, or department main office or lab.; Routing order for approvals should have local approver (reviews funding source) as #1, others as #2 on requisition. All orderes containing individual items costing $500 (including tax) or more, NO MATTER WHAT SOURCE OF FUNDING, must be routed through SECA.
All requisitions for any item, regardless of cost, that will become part of a fabrication, must be routed to SECA.
SECA: Review requisition: verify GL code, delivery address, and availability of similar equipment (per A-110).; Approve, modify, or return to originator for additional information.

Physical Receiving

Receiving and signing for a delivery, then completing SNAP Receiving are the final steps in the procurement process. Receiving is complete when the item has been delivered to the originator/requester, SNAP Receiving is completed and the asset has been tagged.

Anyone in the area may sign for item and deliver to originator. Remind originator of importance to SNAP Receive item.

SoE Receiving (in Durand): Receiving agent sign, complete SNAP Receiving, and tag item, then deliver it to originator/requester.
Local receiving dock (CIS, SCPD): Receiving agent sign, complete SNAP Receiving, and tag item, then deliver it to originator/requester.

SNAP Receiving

SNAP Receiving is the on-line process that authorizes Accounts Payable to pay the vendor for that shipment. It is also the mechanism for notifying the accounting system that you have acted for the University to accept title (ownership) of this item.

Requester: Validate that item delivered was item ordered; test item to ensure it works (if appropriate and if this can be done immediately); give packing slip to Originator (unless CIS, SCPD or SoE Receiving signed for capital asset; in that case simply verify you received what you ordered).
Originator: Stamp packing slip; obtain capital asset information (ID#; Serial #; Location; Custodian; etc.); make SNAP Receiving entry; send packing slip to SECA; contact SECA if any questions arise.
CIS, SCPD loading dock, SoE Receiving: Receiving agent signs, completes SNAP Receiving, and tags item(s). Send packing slip to SECA; contact SECA if any questions arise.
While in SNAP Receiving: Always FYI your SECA DPA in order to insure that item will be properly tagged.

Capital Asset Search

The need to locate an asset arises for several reasons, such as responding to audit requests, locating an untagged asset so it can be tagged and entered into the asset system, or assisting with the grant/contract close-out process. These requests are coordinated by SECA.

SECA: Coordinates resources needed to locate and account for all SoE capital assets.
Coordinates audit response with UPA and departments.
Tags items and enters information into on-line inventory system.
Department office, laboratory or shop: Coordinate local resources to support search.

Capital Asset Tagging

Process of physically tagging assets and collecting data for on-line entry.

All capital equipment must be tagged for accountability, depreciation and insurance purposes.

SECA: Get information from equipment (model #; serial #, etc.), fill out property card.; Attach tag.; Note: if capital asset is untaggable (e.g., too small) attach bar code to copy of purchase requisition.
Department office, laboratory or shop: Identify custodian responsible for asset. Must be faculty member or regular staff. Identify asset location.; Provide access or accept responsibility to ensure tag is attached to asset.; Optional Process: When originator specifies local delivery on the requisition, SECA sends property card, tag and simple instructions to originator.

Recording in CAMS/EIS

The on-line system must be kept up-to-date.

SECA or local receiving dock (CIS, SCPD): SECA updates EIS/CAMS for all originators; Verifies and enters data on-line.; File packing slips.; If item is not taggable, print EIS record and file with tag.
UPA: Review EIS/CAMS updates.

Donation Recording and Reporting

Donations of capital assets must be properly recorded and accounted for within university systems. SECA should be contacted early in donation process for assistance.

SECA: Obtain and review correspondence.; Create no-cost RPO.; Initiate Tagging process.; Create EIS record.; Assemble and send UPA package: all correspondence, value statement, no-cost RPO, EIS record printout, transmittal letter.; Message to Development Office (input to "donor thank you" process).; Inform custodian about parameters (can & can't do with this asset, especially regarding disposal and use).
UPA: Message to Development office (input to "donor thank you" process). Informa custodian about restrictions attached to the donation, especially regarding disposal, (This informatio is usually provided in the original transmittal correspondence.)

Department office, laboratory or shop; Provide SECA with copy of all correspondence including value statements from donor.; Provide access or accept responsibility to ensure tag is attached to asset.

Equipment Moves

Whenever equipment is moved the on-line system must be updated with the new location immediately. Exceptions to this are for short periods such as when equipment is used during travel or at a temporary site. These exceptions still require logging within the local administrative unit. A simple desk log that records the SU ID, who has the item, location, and anticipated return date should meet requirements.

Custodian: Contact department and SECA when moving equipment. Provide change information: location and other.
SECA: SECA updates EIS/CAMS for all originators
UPA: Review EIS/CAMS updates.

Equipment Modifications

When existing assets are upgraded or otherwise modified, the on-line system must be updated to reflect the change.

Originator: Ask requester if order is to upgrade or modify existing equipment. If yes, enter the SU ID tag number of equipment being modified or upgraded in the "remarks" section of the requisition.
SECA: Update EIS record in coordination with UPA .
UPA: Review EIS/CAMS updates.; Help resolve conflicts.

Disposal

Disposal methods include selling or transferring to another institution or agency, scrapping, cannibalizing, etc.

Custodian, PI or Administrator: Send request to dispose of asset to SECA. Include SU ID, tag #, serial #, disposition intent, and account for payment if being sold.
SECA: Create SU-13.; Updates EIS (flag disposal); attach copy of EIS update to SU-13 and send to UPA.
UPA: Review EIS/CAMS disposal transaction.; Forward to Surplus Property Sales as necessary.

Resolving Untagged Capital Assets

Assets in need of tagging and entry into the on-line system may be identified during a physical inventory or by simply noticing an untagged asset.

Department office, laboratory or shop: Provide requisition or RPO number used for purchasing.
SECA: Determine ownership of property. Initiate "Tagging" process.

Physical Inventory Support

Every two years the university must physically inventory all assets then reconcile that inventory to the on-line asset and general ledger systems. At other times, compliance, contract or grant close-out and other audits may require inventory of selected sets of items.

SECA, UPA, GCRS, Inventory Staff: Determine inventory strategy; develop plan.; Notify departments of inventory schedule.
UPA / Inventory Staff: Scan property; verify serial number; attach "I've been inventoried" tag.; Make note if unable to locate; generate "couldn't find" exception report; notify SECA.; Print location list; match with items list.
Generate exception report.
SECA: Resolve exceptions (untagged property; missing property), tag, create a skeleton record in EIS,
create SU-13 for missing property.
UPA & Auditor: Generate Inventory Report.
Department office, laboratory or shop: Coordinate local resources to support inventory, such as access or assistance in laboratories or spaces with hazards.