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Asset Management

Asset Management is the part of Surplus Property/Procurement Services that is responsible for the coordination of a physical inventory of all capital equipment, and for the campus reporting of such. Asset Management/Inventory Control adds equipment to the capital inventory database by reviewing purchase orders and equipment gift documents. 

Greg Anich, is the Asset Management Specialist, and in his role, he supports all four campuses in identifying and tagging capital equipment purchased by the University, while also overseeing the annual Physical Inventory process that all department fiscal officers perform every year. 

UM Policy 24007-Inventory of Moveable Property & Equipment
How are Capital Equipment Assets added to my department's inventory
Who owns Capital assets
Required Inventory Records
Reporting Changes
Verifying Inventory Records

What is a Capital Equipment Asset

A Capital Equipment Assets is a moveable, self-contained piece of equipment that has a lifespan of at least one year.

Policy #22401 - Capital Assets


How are Capital Equipment Assets added to my department's inventory?

When your department purchases a piece of equipment using a Capital Equipment account (77XXXX) for over $5000.00, an employee from the Asset Management department will contact the Requestor on the purchase order to appropriately tag the equipment as a Capital Asset.

A purchase order may total over $5000.00 but if the line item or items are not one Capital piece, or if they do not work together indefinitely as one Capital piece, the items are not considered Capital. If you have questions about whether equipment is Capital or not ask you supervisor or fiscal officer.


Who owns Capital assets?

Equipment purchase orders are created using an Equipment Account (77XXXX is Capital) and a Deptid from your department.  The Capital Equipment Asset will be added to the department whose Deptid was used on the purchase order. The LOCATION does not determine the owner. A department may own equipment located anywhere at any campus. 

If the item purchased was split funded the Deptid funding the majority of the purchase will own the asset. If split funded 50%/50% the first line of funding will own the asset. If you have questions about split funding or Deptid funding ask your supervisor or fiscal officer BEFORE placing a purchase order.


Required Inventory Records

Inventory records must be maintained on all non-expendable, moveable property and equipment which has a single item cost of over $5,000, or is a gift with equal value, and:

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



Procurement Department Responsibilities

The Asset Management/Inventory Control section of Procurement Services is responsible for:

  • Establishing and maintaining the records and procedures necessary for the accountability of the University property and equipment inventory.
  • Determining the items to be inventoried and the numbers to be assigned
  • Affixing the inventory bar code to the property or equipment
    • NOTE: Bar codes will be placed visibly on equipment. If an item costs more than $5,000 and is impossible to tag with a bar code, a log book may be used by the department to keep track of the item.
Department Chairpersons/Administrative Heads Responsibilities

Each department chairperson or administrative official is responsible for:

  • All property and equipment purchased or constructed for and assigned to the department.
  • Verifying inventory records
  • Reporting changes to inventoried property or equipment
  • Establishing and maintaining records and controls for sensitive equipment such as guns, cameras, stop watches, pocket calculators, etc, which are not inventoried under the provisions of this policy.
  • Authorizing the removal of University equipment from their departments for use on University business off campus and maintain written authorization in departmental file.



Capital Assets are depreciated using a straight-line method over the expected Useful Life of the asset with depreciation expense being recognized in plant funds.  Policy #22405 - Depreciation.


Reporting Changes

Previously Inventoried Material

Changes to your department’s inventory records are only made when requested by your department or a related department that may use the equipment. Verification of changes and the accuracy of those changes are the responsibility of the department requesting the change.

Assets may:

  • Change location
    • Locations should be chosen from those that exist in PeopleSoft. New locations should be obtained from Finance Support Center when the purchase order is created
  • Change Custodian (name of person who should know about the asset)
    • Custodian name should be the person who knows details about the asset. Unless specified otherwise, the Custodian and location defaults to the Requestor and location on the purchase order.
  • Change Custodial Deptid (department whose inventory the asset prints on)
    • A Custodial Deptid (ownership) changes can be made if equipment is given or sold to another department. Changes in ownership should be communicated to everyone who may need to know about the ownership change.

A copy of Advice of Gift Received (UM 9A) must be submitted to report the addition of any property or equipment which meets inventory record requirements.


Verifying Inventory Records

Inventory verifications are distributed by the Accounting Office once a year. They are sent to fiscal officers by UM Asset Management.  During the verification process, the following changes can be made:

  • Change location
  • Change Custodian (name of person who should know about the asset)
  • Change Custodial Deptid (department whose inventory the asset prints on)
  • Description
  • Serial number

Changes that CANNOT be made

  • Purchase order number
  • Cost
  • Date of receiving
  • Quantity

Departments are required to:

  • Print the inventory list, and verify the accuracy/completeness of the respective property and equipment listed therein
  • Clearly note changes or additions to any property and equipment on the hard copy of the list. A legible contact name and phone number should be provided for questions.
  • Return a signed, hard copy of the list to Asset Management/Inventory Control (required even if the information is accurate and complete). Return one master list per department only. Provide a receiving DeptId for assets moving to other departments.

It is the department’s responsibility to ensure that changes submitted are true and accurate. This responsibility includes informing all persons and departments associated with the use of the asset so they understand that changes are being requested.  Changes to your department’s inventory should be compiled and returned to your fiscal officer. A complete, detailed record of all inventory changes requests must be retained at the department level for at least three years. If you have any questions about changes to your department’s inventory ask your supervisor or fiscal officer.

Departments with capital assets that cannot be located must be reported IMMEDIATELY to the University Police by telephone and on form UM 155-Disappearance of Assets & Money. The completed form must be forwarded to the Campus Business Office WITHIN 24 HOURS AFTER DISCOVERY OF THE LOSS, and to UM Risk and Insurance Management and UM Internal Audit WITHIN 48 HOURS AFTER DISCOVERY OF THE LOSS. 


Reviewed 2022-04-12