Controllers

Office
Department
Asset Custodian
Training
Controllers Office
Capitalized Asset
Management

Introduction
The head of a custodial department
and the Principal Investigator have
primary responsibility for the care,
maintenance, records, physical
inventory, control, and disposition of
inventorial equipment and other
University or extramurally-funded
property. UCOP BUS-29, Section
C
Controllers

Introduction
The purpose of this workshop is to acquaint YOU as asset
custodians with policies and procedures, tools and
resources that are available to you in caring for the
Universitys capitalized assets.
You can thus fulfill the goal of safeguarding the high-value
assets of the University in the best manner possible.

Controllers

Who Are Those Guys?

CAM is a part of UCSF Controllers Office Capital
Accounting. It is responsible for:

Maintaining a database of asset information

in the PeopleSoft Enterprise Online Financial
System,
Capitalizing assets purchased, leased,
donated or transferred to UCSF,
Monitoring campus-wide adherence to
University policies and guidelines,
Maintaining inventory controls and
accountability systems,
Organizing and implementing the campuswide biennial physical inventory
Controllers

Who Are Those Guys? (continued)

- Reviewing and approving asset
transfers to other UCSF departments,
UC campuses or non-UC entities,
- Reviewing and approving the disposal
of excess property in accordance with
applicable policy and regulations and
- Providing consolidated reporting to
UCOP and other funding agencies.

Controllers

A couple of definitions
Capital Asset - Any purchase of physical equipment with a
cost greater than or equal to $5000- (including sales tax,
start-up supplies, delivery, and installation) with a useful
life greater than one year.
For example, if you purchase a piece of equipment
for $4800- it will most likely be considered a Capital
Asset after taxes, etc.
Custody Code The custody code is a 4-digit code issued
by CAM at the behest of the department. Each custody
code requires a custodian who is responsible for tracking
the equipment. Departments are required to supply a
custody code number to Procurement Services when a
requisition is created.

Controllers

Steps in the purchase of Inventorial equipment

Steps in the purchase of Inventorial equipment

Steps in the Purchase of Inventorial

Equipment
Purchase Order generated in BearBuy
At this time the Capital Equipment form should
be used and your custody code should be
assigned by the requestor/purchaser.

Controllers

Purchase Order in BearBuy

Capital Equipment Form

 Use this form for any Capital Equipment

Purchase or Capital software purchase

Controllers

 Be sure to fill in the custody code under

the Asset Management tab on Purchase
Order

Controllers

 Purchase Order generated in BearBuy

At this time the Capital Equipment form should
be used and your custody code should be
assigned by the requestor/purchaser.

Get to know/contact the purchasers for your

department.
If you do not know who they are, get in touch and Ill
send you a list.
Familiarize them with your code & when to use it.

Controllers

Steps in the purchase of Inventorial equipment

 CAM (Capital Asset Management)reviews the PO:

Assigns an EQ code (this is a code used to establish useful life
of equipment)
Assigns a tag# (You will receive the tag with tag form shortly
after to fill out).

Controllers

Property Tag

Steps in the purchase of Inventorial equipment

 Custodian Receives Tag:

Affix tag to associated equipment
Review description and send back the
model number, serial number, and
location

Role of the Custodian

Liaison between CAM and the Department
Primary contact point for Department
Provide current information to CAM to assure
accurate records
Insures University and Federal requirements are
met (i.e. donations, transfers, disposals, etc.).

Controllers

Definitions
For discussion purposes today the
only definitions that will be included
are those required to create an asset
file in PeopleSoft and for reporting to
UCOP. However, the manual lists
many others and the custodians
should be familiar with all of them.

Controllers

Definitions (continued)
- CAAN/Location An up to 8-digit code representing
building AND room. Federal Regulations require both
building and room number.
- Custody Code The custody code is a 4-digit code issued
by CAM at the behest of the department. Each custody
code requires a custodian who is responsible for tracking
the equipment. Departments are required to supply a
custody code number to Procurement Services when a
requisition is created.

Controllers

Definitions (continued)
Inventorial Equipment
A single unit,
freestanding,
non-expendable,
with a cost (including sales tax, delivery, and start up
accessories and supplies) equal to or greater than
$5,000.00.
Property Number A nine-digit number printed onto a
barcode tag that is affixed to the equipment as a unique
identifier.

Controllers

Definitions (continued)
Groupings within the 9 digits
nn+nn+n+nnnn
First two digits year asset was added to
the asset inventory (last 2 digits)
Second two digits UC Campus that
originally acquired asset (e.g. 10=Berkeley;
20=S.F.)
Fifth digit (under UCSF) - 0 for Campus, 3
for Gallo Clinic, 5 for Medical Center, and 9
for Vehicles.
Last four numbers - issued sequentially to
uniquely identify each asset.
Controllers

Definitions (continued)
Manufacturer The company that produces or OEMs the
equipment
Model Number The number assigned by the company to
identify specific versions of equipment.
Description This is a simple one or two-word field to help
the custodian locate equipment.
EQ Code A 5-digit (one alpha and 4 numeric number) code
that is based on the type of equipment and is used by
UCOP to calculate depreciation.

Controllers

Primary Responsibilities

1) Change of Custodian
Custodian Maintenance Form
2) Property Tag
3) EIMR form
All additions to inventory
All removals of equipment

4) Biennial Physical Inventory

5) Physical Inventory Audit
Controllers

Change of Custodian
Fill out Custodian Maintenance form.
Include all custody codes the change
is applicable to.
Obtain approval (sign off) from the
Financial Administrator or Business
Officer.
Send or email the form with Section
2 completed to CAM.

Controllers

Primary Responsibilities
1) Change of Custodian
Custodian Maintenance Form

2) Property Tag
3) EIMR form
All additions to inventory
All removals of equipment

4) Biennial Physical Inventory

5) Physical Inventory Audit
Controllers

Property Tag

Controllers

Primary Responsibilities
1) Change of Custodian
Custodian Maintenance Form

2) Property Tag

3) EIMR form
All additions to inventory
All removals of equipment
4) Biennial Physical Inventory
5) Physical Inventory Audit
Controllers

Provided by
CAM

Lets us
know
what you
want to
do.
Item
Descripti
on
1)
Surplus
2)
Transfer
to another
departme
3)
nt Sale
4)
Remarks,
always
include
Signatur
es
Controllers

New Assets
Equipment may be added to a
departments inventory in the following
ways:
- A Purchase Order is processed through
Procurement Services.
- A Lease Agreement > $100,000 total
value
- A department receives a gift (cleared by
Development Office)
- Equipment is transferred from another
institution or UC Campus
- Equipment is borrowed from an outside
institution
Controllers

Principles of Equipment Disposals

A department may dispose of
equipment ONLY IF the University
holds title.
An EIMR must be submitted
whenever equipment is to be
removed from a departments
inventory.

Controllers

Retiring Assets
1)Send to Surplus Sales for public sale
or disposal.
2)Destroyed or cannibalized for parts
3)Stolen. EIMRs reporting stolen
equipment MUST include a police report
number.
4)Intercampus Transfer
- letter from department head
- Other campus EIMR with signature of
recipient campus equipment manager
- EIMR from department
5)Lost
Controllers

Retiring Assets (continued)

6) Donate to a non-profit or educational institution.
The following procedure must be followed per BUS38:
- Requesting agency submits request on letterhead
- Dept Head verifies in writing that equipment is no
longer useful in dept
- Department submits request, letter, and EIMR to
CAM.
7) Sold to another non-UC non-profit entity in
conjunction with faculty move.

Controllers

Primary Responsibilities
1) Change of Custodian
Custodian Maintenance Form

2) Property Tag
3) EIMR form
All additions to inventory
All removals of equipment

4) Biennial Physical Inventory

5) Physical Inventory Audit
Controllers

Physical Inventory - Purpose

The reason for the physical inventory
is to produce an accurate inventory
through:
Physically locating equipment that is in use,
Removing from the database equipment not
found, and
Adding high value equipment which is being
used but is not included in the asset list.
Updating existing equipment attributes
(Description, Mfg., Model, Ser. ID, etc.)

Controllers

What Is At Stake?
Federal funding requires system-wide
compliance with their asset management policy
and procedures
Certification as a Federally compliant research
facility is contingent on adherence to established
guidelines
UC Office of the President financial reporting
requires up-to-date inventory information
Campus Facility and Administration (F&A)
rate is affected and
Insurance payments in case of loss, theft, or
disaster hinges on substantiation of location
recorded in the system.
Controllers

Physical Inventory Process

Per State and Federal regulations
complete inventory of campus and
medical center required every 2
years.
CAM will provide custodian with a list
of equipment by custody code.
Custodian embarks on search or
organizes search party to locate and
verify each piece of equipment listed.
Controllers

PROCESSES

Physical Inventory Process (Continued)

The notification email will include the following
attachments:

List of Assets
List is arranged first by building code/room number,
then by property tag number and furnished in both
PDF and Excel file formats.

Instruction Sheet
Link to online tools
Tools include schedules, forms, building code lists,
comprehensive information and instructions and
other resources helpful toward a successful
completion.

10/4/2013

Process (continued)
During the inventory process the
custodian should verify the following
attributes which can be changed if
necessary:
Location - Building (CAAN) and room
number
Description
Manufacturer/Model Number
Serial Number (should be provided if not
listed)
Controllers

Process (continued)
Attributes that cannot be changed by
the department are:
- Property Tag Number
- Cost
- Original Dept ID/Fund

Controllers

Primary Responsibilities
1) Change of Custodian
Custodian Maintenance Form

2) Property Tag
3) EIMR form
All additions to inventory
All removals of equipment

4) Biennial Physical Inventory

5) Physical Inventory Audit

Controllers

PROCESSES

Physical Inventory Field Audit

All submittals for a particular month are subject to a random
sampling audit.
CAM randomly selects 10% of the asset population sent in during
the targeted month.
CAM emails custodian with assets to be verified clearly identified.
A CAM team member and the department asset custodian travels
to the location specified in the physical inventory findings by
appointment to confirm accuracy of reported data.
An error rate of 10% or less of sample population constitutes a
successfully-completed physical inventory.
An error rate of greater than 10% requires a second random sampling
audit.
If the second audit is unsuccessful, all custodial departments
submitting physical inventories for the target month will need to retake their physical inventories.
Controllers

PROCESSES

Physical Inventory Summary

The departmental physical inventory is

considered complete when:
Custodian returns listing with
corrections;
CAM enters corrections and sends the
updated inventory report to custodian;
Custodian and department head signs
off that the inventory report is accurate;
Statistical sampling audit produces 10%
or fewer errors.
Controllers

EPILOGUE

Wheres the Help?

Asset Custodian Training Workshops held periodically
Controllers Office Website at: http://controller.ucsf.edu/
Capital Accounting & Equipment

FAQs
Policies
Procedures & Job Aids
Training
Forms
Contacts

Department Asset Custodian Manual handed out at the workshops and

available for viewing or printing from Controllers Office website
WebLinks Asset Management Report (AM) module accessed for historic
equipment information
Desktop Training Program, one-on-one training for asset custodians. CAM
sends a team member at departments invitation to discuss the
responsibilities of the position, how to access online resources and any
unique challenges the custodian faces.
Controllers Office Monthly Electronic Newsletter
Controllers

 http://controller.ucsf.edu/

 http://controller.ucsf.edu/

Overview Introductory information if you are new

Controllers

 http://controller.ucsf.edu/

Forms related to capital accounting

Controllers

http://cpbc.ucsf.edu/

EPILOGUE

Who Can I Call?

Physical Inventory Contact Terence Hurley
terence.hurley@ucsf.edu 415-502-2657
Equipment Accounting - Angela Farren
angela.farren@ucsf.edu 415-502-5642
Equipment Invoices - Jim Antuk
jim.antuk@ucsf.edu 415-476-2885

Capital Accounting Supervisor Renee Boyd

renee.boyd@ucsf.edu 415-502-3042

Capital Accounting Manager Amy Nichelini

amy.nichelini@ucsf.edu 415-476-2997

If I cant help,
I will find someone who can.

The End