Property Management Policy & Procedure Manual
Section 600: Biennial Inventory
Effective: 07/01/1986
Revised: 06/20/2016

 

As a recipient of federal grants and contracts, OSU is required to be in compliance with the Office of Management and Budget (OMB) Uniform Guidance (UG): Cost Principles, Audit, and Administrative Requirements for Federal Awards.

Under UG section 200.313 (d) (2) -  "A physical inventory of equipment shall be taken and the results reconciled with the equipment records at least once every two years."  Any differences between quantities determined by the physical inspection and those shown in OSU's inventory records are investigated to determine the causes of the difference.

Fixed Assets Property Management - Business Affairs conducts inventories department-by-department using hand-held bar code scanners to compare against records held within Banner.  Unless a bar code scan inventory is scheduled, off- campus departments, Extension Offices and Agriculture Experiment Stations (AES) will conduct manual inventories as directed biennially.

This inventory process is an integral part of OSU's approved Property Control System (PCS). It is extremely important to receive the cooperation of the responsible Equipment Manager or designated representative when scheduling inventory scans and following up on capital equipment questions.

The inventory process typically consists of six stages:

  1. Initial Scan(s)
  2. Final Scan
  3. Reconciliation
  4. Fixed Asset Final Report
  5. Final Report Review
  6. Master Inventory File Updates
Responsible Party Action
  Initial Scan

Fixed Assets Property Management

Contact each department, set up an appointment to conduct the initial scan, and email a list of current assets to the equipment manager for the department.

Fixed Assets Property Management & Department

Fixed Assets Property Management with the department representative will make a first pass scan through every location in a department's area of responsibility containing current assets held by the department.  All equipment with a barcode tag should be scanned, even if it does not belong to the department.  Each barcode scanner has current information from the University's inventory in its memory so fields can be verified and corrected or noted. Fixed Assets will verify that any software valued over $100,000 is still in use.

Note: Off-campus areas will normally conduct manual inventories. Fixed Assets Property Management will send a list of current assets to the equipment manager to verify the existence of each asset. Departments will email photos of the asset tags and the equipment to Fixed Assets Property Management for visual verification.

Fixed Assets Property Management

Prepare a list of all equipment that was not scanned.  This "Assets Not Scanned" report will be provided by Fixed Assets to the departmental equipment manager within five business days of the initial scan.

Department

Locate remaining assets within a two-week period and contact Fixed Assets Property Management to schedule the Final Scan.
  Final Scan

Fixed Assets Property Management

At the end of the two-week period, contact the department for the second scan appointment. 

Note:

  • If the equipment manager does not respond or has not located missing equipment, contact their supervisor for assistance.
  • If there is no response from either the equipment manager or their supervisor after 30 days from receipt of “Assets Not Scanned” report, contact the Department Head.
  • If there is still no response from the department after 60 days from receipt of the "Assets Not Scanned" report, contact the Dean of the College or the Director of the Department.

Fixed Assets Property Management & Department

Scan/verify all the available items on the "Assets Not Scanned" report.
  Reconciliation

Fixed Assets Property Management

Upon completion of the final scan and within five business days, Fixed Assets will provide a final "Assets Not Scanned" report to the departmental equipment manager.

Department

Use the final "Assets Not Scanned" report as the reconciliation report to state the reason why each asset was not scanned.  Submit the reconciliation report to Fixed Assets Property Management with back-up documentation to support this information.  Back up documentation includes one or more of the following:

  • Copy of a loan agreement
  • Email confirming location of asset and responsible parties
  • Copy of Surplus Pick Up Request for items sent to Surplus
  • Property Disposition Request (PDR) form for items cannibalized, salvaged, or missing. Note: In the case of a missing piece of equipment, the PDR should state why the asset cannot be located. The unit equipment manager and department head/director will be required to sign the PDR to certify that they have the authority and responsibility for the equipment listed on the PDR.
  • Fixed Asset Transfer form for items transferred to another department

Note: See PRO 903: Reporting & Inventories for necessary actions regarding missing federal property.

 

Fixed Assets Property Management

Fixed Assets will email the Fixed Asset Final Report to the Department Equipment Manager and copy the Department Head.

Department

Review the Fixed Asset Final Report. Indicate any updates that need to be made, including Location, Equipment Manager, Custodian, and/or Condition Code.

The Department Head or Director of the Department will receive a copy of the report for their reference. They should review this report and follow up with the Department, if there are any questions or concerns. This finalizes the biennial inventory process for the department.
  Master Inventory File Updates

Fixed Assets Property Management

The inventory scan data will be uploaded to FIS Banner periodically.  The upload will correct the asset information including location of the asset and the date the asset was scanned to the Fixed Asset Record’s "Last Inventory Date" field.  Other corrections to asset information or condition will be input as departments submit their inventory reconciliation updates.  PDRs and Fixed Asset Transfer forms will be processed as they are received.