Oct 23, 2021  
Policies and Procedures Manual 
    
Policies and Procedures Manual

05:08:00 Equipment Inventory Control


Revision Responsibility: Vice President for Business Affairs
Responsible Executive Officer: Vice President for Business Affairs

Purpose

To define processes and controls to secure institutional equipment.


Policy

I. Introduction

The following procedure applies to moveable equipment, specified sensitive items, but not to general supplies, fixed equipment, or library holdings. Items such as built-in furniture, lights, and plumbing fixtures are to be considered part of the building.

There are certain characteristics of “equipment” to which consideration should be given in making a proper classification; however, discretion is necessary in applying the definition in order not to classify as equipment items which should properly be treated as expendable supplies and materials.
 

  1. Equipment generally retains its original appearance and shape with use which extends over a period in excess of three years, whereas materials and supplies usually change in appearance and shape as they are used and are consumed within a relatively short period of time.
     
  2. Equipment is non-expendable. If the article is damaged or parts are worn out, it is usually more feasible to repair it than to replace it.
     
  3. Equipment does not lose its identity through incorporation into a different or more complex unit.

II. Capital Equipment

Capital equipment is defined as items of a moveable nature, having a minimum unit cost of $5,000 that will benefit the program for more than one (1) year. Exceptions to the equipment definition are as follows:
 

  1. Items purchased at less than $5,000 are classified as equipment when the items are to be incorporated into another piece of equipment already existing or being constructed. If the item being purchased will lose its identity by incorporation into a different or more complex piece of equipment, then it will not carry its own inventory tag number.
     
  2. Surplus equipment purchased by or donated to Walters State will be classified as equipment if the estimated current value is $5,000 or more. This estimate will be made by the person purchasing the equipment and the vice president for Business Affairs or his or her designee.

III. Sensitive Minor Items (equal to or greater than $1,500 but less than $5,000)

Include sensitive items that are not consumed or destroyed with use and will benefit the program for more than one (1) year. However, all mobile devices less than $5,000 will be considered sensitive minor (e.g. iPads, laptops)

  1. The following items will be maintained in an inventory file due to their sensitive nature, provided they meet the above definition:
     
    1. Audio/visual equipment
       
    2. Computers, printers, and iPads
       
    3. Computer monitors
       
    4. Computer network hardware (e.g., CISCO, Gandalf, Digital)
       
    5. Test Scanners (e.g., NCS)
       
    6. Scientific equipment (e.g., oscilloscopes, microscopes)
       
    7. Medical equipment (e.g., defibrillators)
       
    8. Vehicles (all moveable gas, diesel, battery, oil, and electrically operated)
       
    9. Any weapons costing less than $5,000
       
    10. Musical instruments
       
  2. A department head/budget manager may include supplies in the sensitive items records which do not meet the minimum cost by notifying the purchasing office.

IV. Responsibility for Equipment

Ownership of property acquired by Walters State Community College rests with the college, as an agency of the State of Tennessee, whether acquired by public funds, special grants, or by gifts. The Purchasing Department will maintain inventory records and will record all additions, deletions, and transfers of equipment. Academic supervisors are responsible for the custody and maintenance of all equipment purchased for, or assigned to, their respective departments. Academic supervisors have this same responsibility with respect to all equipment in their areas or divisions, which is not assigned to specific departments, and additionally have a general responsibility to see that department heads exercise their individual equipment responsibilities.

V. Adding Equipment and Sensitive Minor Items Purchased to Inventory

Each piece of equipment and sensitive minor item will be electronically tagged when purchased for Walters State Community College. The process for adding each item to inventory is as follows:

When a piece of equipment or item is received, an inventory tag will be placed on the equipment/item, and it will be engraved with the college’s name and inventory tag number.
The inventory tag number and item serial number will be provided to the purchasing office. The electronic inventory record created will contain the following information:
 

Description Vendor Name
Serial Number Manufacturer’s Name
Custodian ID Date Received
Purchase Order Number Total Cost
Location Accounts Payable Invoice Number
Permanent Tag Number  


Cost will be used in all cases when available; otherwise a reasonable estimate will be used. Freight and installation charges will be a part of the cost of equipment.
 

Banner Location Codes are by building. The building codes are:

A Recreational Annex
CC College Center
CH Chiller Building
CON Concession/Dressing Room - Softball
CP Information/Campus Police Building
CR1 Racquetball Court 1
CR2 Racquetball Court 2
DHB Dugout Home - Baseball
DVB Dugout Visitor - Baseball
DHS1 Dugout Home - Softball
DVS Dugout Visitor - Softball
EQ Heavy Equipment Storage
GH Greenhouse
H House
HU Humanities Building
LI Library
MB Math/Behavior & Social Sciences
NS Natural Sciences
PO Plant Operations
PRB Press Box/Concession Stand - Baseball
PRS Press Booth - Softball
RES PE Restroom
ST Main Storage Building
SU Student Services Building
TE Technical Education Building
TUR Turf Management Lab
CL Claiborne County Campus
EM Expo Main Building
EB1 Expo Horse Barn #1
EB2 Expo Horse Barn #2
GC Greeneville Campus
PS Public Safety Complex
P Public Safety Center Observation Center
CS Connor Short Center-Sevier County Campus
CCH Cates Cutshall Hall-Sevier County Campus
MM Maples Marshall Hall -Sevier County Campus
WSG Greenville Welding Center

The signature of the person requesting the item on the receiving report for that item shall be deemed as accepting responsibility for that item.

VI. Items Not Owned by Walters State Community College

Items owned by the federal government and other contracting agencies will be inventoried and accounted for separately in accordance with the contract provisions. This method of accounting will also be followed for all other equipment in possession of, but not owned by, the college. Items on loan to Walters State Community college will be reported in writing to the Purchasing office when entering or leaving the campus. Walters State Community College will not be responsible in any way for the personal property of others used or kept on college property.

VII. Transfers Between Departments

Transfers of all tagged equipment between departments of Walters State Community College are to be arranged by agreement between the departments involved and are to be listed on a Request for Transfer of Equipment form. The form is to be sent to the purchasing office. Once all appropriate approvals have been acquired on the Transfer of Equipment form, a Work Order will be submitted by the property officer for the equipment/items to be moved. All transfers of IT equipment are to be coordinated with IET.

Approval of the department heads/dean/budget managers is required for all equipment transfers. The signature of the “transferee” indicates acceptance of responsibility for the equipment. Any tagged equipment or sensitive minor items being moved in any way must be reported to the Purchasing Office using a Request for Transfer of Equipment or Request to Declare Property Surplus form.

VIII. Inventory Deletions

Deletions to the equipment inventory records are necessary when items are traded, sold, lost, obsolete, stolen, or destroyed. With proper documentation and after securing the necessary approvals, the department is relieved of responsibility for the item subject to the following conditions:
 

  1. Department heads may recommend the trade-in of equipment. The appropriate department head will work with the assistant director of fixed assets and purchasing to make best use of the equipment to be traded. The department head will report any theft or loss of property to Campus Police immediately. Campus Police will conduct an investigation and provide a written report to the purchasing office.
     
  2. Any inventoried (tagged) equipment or items being moved from a department in any way must be reported to the purchasing office.

IX. Surplus

Items determined to be excess to a department may be transferred to another department or declared surplus by the property officer.
 

  1. A list of any items deemed no longer needed by a department should be sent to the property officer along with a photo of each item.
     
  2. The property officer will send a notification of available surplus to all departments and make the arrangements to have items moved if the items are claimed. A Request for Transfer of Equipment form must be completed if the item(s) being moved has a WSCC inventory tag.
     
  3. If the items are not wanted by another department, a Request to Declare Property Surplus form should be completed by the department and submitted for appropriate approvals.
     
  4. Once the items have been approved for surplus, the property officer will make arrangements to have the items moved to surplus storage for disposal. Disposal of all surplus property will be in accordance with TBR Policy No. 4:02:20:00.

X. Physical Inventories

Capital equipment in each department will be physically verified once each year. Although sensitive minor equipment items are not capitalized, they must be identified and inventoried. Physical inventory of sensitive minor equipment should be conducted annually. Sampling is an acceptable method of conducting the physical inventory of sensitive minor equipment. If any item is missing and cannot be accounted for, it is to be reported in writing to the proper authorities at Walters State Community College.

XI. Use of College Equipment

Equipment may only be removed from college premises for the purpose of college business. If college property is taken outside an employee’s office or off the worksite (i.e., the campus) in order that an employee may pursue job-related activities, then a log of the whereabouts of this equipment must be maintained. All college property must be tagged in accordance with state regulations, and college officials must be able to identify where tagged items are at all times. The following policies will be used to govern the use of college equipment:
 

  1. Equipment may not be signed out for use unless the serial numbers are recorded and inventory tags have been placed on the equipment by Purchasing Department. No equipment may be removed from campus without proper authorization.
     
  2. All special and instructional equipment housed in the Library must be signed out through the Library. When checked-out equipment is not in use, it must be kept in a secure place. Equipment may be checked out to an individual for use on or off-campus for instructional purposes or college- related functions.
     
  3. The replacement of damaged or lost college equipment with that of equal value is the responsibility of the signer when negligence is the cause. Such replacement must be approved by the vice president for Business Affairs.
     
  4. When provable security measures are taken, and equipment is stolen or damaged, replacement may not be expected of the signer.
     
  5. Equipment alien to the campus, borrowed by faculty or staff, and used on campus is done so at the risk of that particular borrower; and is not the responsibility of the college.
     

It is the responsibility of each faculty and staff member and the intention of this college to protect and to make the wisest use of property and equipment. This is true of all property, whether or not it was purchased with state funds or was a gift, so long as it is inventoried for college use.

Equipment may only be removed from college premises for purposes of college business. Whenever college equipment must be removed from college premises for official reasons, other than in connection with routine operations, a Checkout of Equipment form needs to be completed and submitted to the purchasing office. The purchasing office should be notified when equipment is returned.

Any removal of college equipment from college premises by individuals other than college personnel or for any reason other than college business must have approval in writing by the president prior to moving the equipment. A Checkout of Equipment form must be completed when the equipment is picked up. The purchasing office should be notified when equipment is returned by completing the bottom section of the Checkout of Equipment form.

XII. Equipment Repairs

Equipment “repair” is defined as a piece of equipment which is returned to the vendor for maintenance and that same piece of equipment is returned to the institution. When a piece of equipment needs repairing and is still under warranty, a requisition must be submitted to the Purchasing Office with the following information: state tag number, equipment serial number, description of item, nature of the repair needed, estimated cost, and any other appropriate information or special instructions. The Purchasing Office will contact the vendor and make arrangements for repairs after the issuance of a purchase order. If the selected vendor needs to repair the equipment/item off campus, a Request for Transfer of Equipment form must be completed and forwarded to Purchasing Office to record the temporary transfer of the equipment to the vendor. In addition, if the item to be repaired needs to be sent via common carrier to a vendor for repairs, the Purchasing Office will prepare the shipping documents and arrange for the item to be sent to the vendor. This procedure is necessary in order to provide for appropriate inventory control. 09/98; 08/04; 09/06; 07/12; 07/13; 05/16; 07/18