Property & Capital Equipment

BPM-407 Inventory of Movable Property and Equipment

Revised April 8, 2015

Property - Definition

For purposes of this policy, the term “property” refers to all movable property and equipment purchased or fabricated with University funds as well as that property or equipment owned by external sponsors but currently in the University's custody.  In addition, it applies to all movable property and equipment received by donation, or acquired through governmental surplus property procedures.

It does not apply to other items such as land, buildings, infrastructure, or equipment which is not movable or which is permanently affixed to buildings or infrastructure.  It also does not apply to consumable supplies.

Inventory Records

Each campus must maintain official inventory records for all University owned property which has a single item cost of $5,000 or more, or is a gift with equal value, and:

  • Has an expected useful life of one (1) year or more; and
  • Is self-contained for its primary function (not a component part of any other piece of equipment); and
  • Has sufficient individuality and size to make control feasible by means of identification tags, numbers and/or manufacturer’s serial numbers marked thereon.

Campuses may choose to maintain inventory records for additional items.

Requirements for record keeping for sensitive and portable equipment below this value are described in the “Responsibilities: Department Chairperson and Administrative Heads” section of this policy.

Property Associated with External Sponsors

All property purchased or fabricated with external funding, or provided by an external sponsor, regardless of whether the title is retained by the sponsor or the University, must be inventoried, tracked, and disposed of in accordance with the terms and conditions of the external sponsor’s requirements.  This is applicable to sponsored project assets as defined by the sponsor.

Property purchased through System Supply Chain with external or University funds, where a designated entity other than the University will receive the property and title, will not be inventoried unless stipulated by the agreement with the entity providing the funding. It is the responsibility of the department initiating the purchase to notify System Supply Chain (Surplus Property and Asset Management) when these items are not required to be inventoried.

Reference:  BPM 210, Sponsored Programs


System Supply Chain (Surplus Property and Asset Management) or University of Missouri Health Care (MUHC) Controller’s Office

  • Establish and maintain the records and procedures necessary for the accountability of the University property inventory.
  • Maintain a listing of inventories completed by departments and notify the respective Campus Accounting offices of the status of completed inventories.  MUHC inventory will be handled by the MUHC Controller’s Office.
  • Inventory shall be identified by affixing the inventory decal or tag to the property or by an alternative identification number, including the manufacturer’s serial number, model number, or other identification number in cases where the tag or decal cannot be affixed to the equipment (i.e., some fabricated equipment).  The alternative identification number should be traceable to the corresponding documentation on files such as a purchase order or invoice.  Non-owned property that must be tracked will be identified by a decal or tag of a different type and/or color than that affixed to University-owned property.

Department Chairperson and Administrative Heads

  • Are responsible for all property purchased or fabricated and assigned to the department.
  • Establish appropriate controls for all products purchased with University funds, maintain records and controls for sensitive or portable equipment such as laptop and desktop computers, monitors and printers, and guns, which are not otherwise inventoried under provisions of this policy, and produce evidence of such controls upon request from the appropriate authority.  The information maintained must include:
  1. Item Description
  2. Make and Model Number
  3. Date Purchased and Price Paid
  4. Individual to whom the Equipment is Assigned
  • Notify the System Supply Chain (Surplus Property and Asset Management) or University of Missouri Health Care Controller’s Office of property additions or deletions and location changes throughout the year (i.e., property obtained from donations or external sponsors, or property that has been lost, stolen, destroyed, or identified as surplus). 

Reference:  BPM 212, Gifts-Processing

  • Verify inventory records provided by the System Supply Chain (Surplus Property and Asset Management) or University of Missouri Health Care Controller’s Office annually.  Specifically each chairperson or administrative head must verify the location of the equipment and certify that the property is useful and needed.  The individual verifying the location of an inventory item must be separate from the custodian of the item.
  • Verify and return certification statement with corrected annual physical inventories indicating the inventories were conducted in accordance with University Policy and Procedures by the prescribed deadline.  Certification must either be signed and scanned or sent via e-mail from the certifying individual.         

System Supply Chain (Surplus Property and Asset Management) or University of Missouri Health Care Controller’s Office)

  • Distribute an inventory report to each department chairperson, administrative head, or fiscal officer annually.
  • Monitor the completed physical inventories and manage the list of inventories to timely completion.
  • Keep inventory records up to date throughout the year for any additions, deletions, and movements of property.

Accounting Offices

  • Reconcile accounting amounts in the General Ledger with amounts recorded in Asset Management.  See the Office of the Controller’s Accounting Policy and Procedure Manual – 20.5 – Capitalization of Assets, for detailed accounting procedures.

Reporting Changes

A Property Inventory Change Report (UM Form 27) must be submitted to System Supply Chain (Surplus Property and Asset Management) or University of Missouri Health Care Controller’s Office to report:

  • Any inventoried property that has been lost, stolen, destroyed, found (having previously been reported lost or stolen), or identified as surplus.
  • The addition of any property meeting inventory requirements that has been fabricated with University funds or received as a gift.
  • Transfer of ownership when the terms of some sponsored project agreements specify that the sponsor retains title of the property until a specific time has lapsed after the purchase of the property (most commonly, at the end of the project). 
  • Any property meeting inventory requirements that has been provided by loan, either temporarily or indefinitely, by an external sponsor.

A Property Inventory Change Report is not required to report the addition of any new property or equipment purchased on a Purchase Order.


University owned property, or non-owned property for which the University has custodial responsibilities,  shall not be sold, given away, destroyed or otherwise disposed of without the permission of the System Supply Chain (Surplus Property and Asset Management) or Chief Procurement Officer of the UM System.  See BPM 308 for detailed disposal guidelines.

Reference: BPM 308, Resale, Sale or Disposal