Facilities Services: Accountability for Equipment Policy

Unit Policy

Title

Facilities Services: Accountability for Equipment Policy

Introduction

Purpose

Scope

Policy

Overview of Equipment Tracking & Accountability

All University equipment is classified as either moveable or plant equipment. All moveable equipment costing more than $5000 that has a life-span of one year or more is capitalized. The University requires that all capitalized equipment be tracked from purchase to disposal. This inventory is tracked by assignment of a Property Number issued by Asset Accounting in the Controller's Office.

The Facilities Services Division has its own, more stringent requirements based on its twin needs (1) to track the large amount of tools and equipment, both above and below the amount of concern to Asset Accounting, that is assigned to its employees and (2) to perform periodic inspection and maintenance on equipment both fixed and moveable.

Equipment Classes

The Facilities Services Division recognizes four types of equipment: plant equipment, major equipment, minor equipment, and window air conditioners. Each is tracked using slightly different procedures.

Plant Equipment

Plant Equipment is non-moveable equipment identified by a Facilities Services # and included in the Preventive Maintenance program. Examples are water coolers, air handlers, and water stills.

Major Equipment

Major equipment includes all moveable equipment having a unit price in excess of the capitalization minimum established by Asset Accounting (currently $5000). More inclusive definitions may be established for each Superintendent's area by the responsible Director. The appropriate Director establishes the definition for the administrative and staff areas. Complete details by superintendent are listed below.

Examples of major equipment are power tools, hoists, and sewer equipment.

When applicable, Superintendents should establish kits of minor equipment for each shop to be tracked as a single item of major equipment. If there is a list of, say, 20 small tools (i.e., what would otherwise be classified as minor equipment) that each trades person in that shop is issued, the Superintendent should define a Kit that would be tracked as an item of Major Equipment. The trades person would be responsible for maintaining a complete kit.

As a general rule, all areas within Facilities Services classify equipment with a value in excess of $500 as major equipment. A complete list of the current rules & exceptions by superintendent follows:

Figure 1: Rules for Major Equipment Accountability by Superintendent

Area	Superintendent	>$500 not tracked	tracked even if < $500
Design & Construction Services Building Services	Construction		Ladders Amprobes
	Maintenance
	HVAC
	Housing Support
Grounds		Push Mowers	…………………
Housekeeping		…………………	…………………

Minor Equipment

Moveable equipment that falls below the major equipment limit for each Superintendent is classified as Minor Equipment. Minor Equipment is assigned to either a shop employee or a Supervisor, and accountable for by the Superintendent. Examples are hand tools and safety equipment.

Window Air Conditioners

Window units are separated because they are portable, and below the limits set by Asset Accounting yet they are assigned to no individual and are tagged for Preventive Maintenance with a Facilities Services #.

Equipment Status for Major Equipment

A Form E/S 102 (Moveable Equipment – Notice of Disposal or Change in Location) must be submitted whenever a piece of Major Equipment changes status. One of the disposition statuses defined below must be checked on all forms.

Cannot Locate

As soon as equipment turns up missing it should be reported as cannot locate. The employee assigned responsibility must prepare a written evaluation of the reason for the loss when the equipment is first reported as missing. The employee may be asked to reimburse the Facilities Services Division for the equipment.

Stolen

When equipment turns up missing and it is presumed to be stolen, the supervisor or individual responsible for the equipment must contact the UNC-CH Public Safety Department immediately. A copy of the police record must be attached to the Form E/S 102.

Bid Sale From Department

Since the Facilities Services Division handles all equipment sales through Materials Management Surplus, this section should not be used. Note that on the sale of surplus equipment purchased through Facilities Services Trust Funds, Facilities will be given the proceeds of the sale via check from the State Surplus Division.

Trade-Ins

If a piece of major equipment is traded in on the purchase of a new piece of equipment, this block is checked and all of the required information must be completed. Note that the item's Asset Property Number (bar code or decal) must be removed and affixed to the E/S 102 form in this instance.

Scrapped for Parts

Equipment that is beyond repair and that will be salvaged for use as spare parts on similar items must be reported as scrapped. Note that the equipment must not be discarded, and that the remains must be sent to Surplus Property along with the bar code or decal.

Surplus Property

When a piece of equipment becomes obsolete, it is then surplused. Equipment being surplused is taken to the Surplus Property Warehouse where a written receipt is issued. This receipt, Form P-110, must be attached to the E/S 102 and brought to the Business Operations' Cost Accounting & Billing Office, where a copy is kept on file and a copy is sent to the Asset Accounting Office. Note that the equipment's Asset Property Number (bar code and/or decal) is left on the piece of equipment being surplused. However, if the equipment also has a Facilities Services #, that tag should be removed and attached to the E/S 102 Form.

Transfer

When a piece of equipment is no longer needed by a department within Facilities Services, it should first be made available to other Facilities Services departments provided that it is the type of item that might be of interest or use to other areas. If there is not a use within Facilities, then the equipment may be transferred to other departments on campus provided that the department director responsible for the area grants prior approval. If an item is to be transferred to another agency or institution within the State, prior University approval is required. See the University Business Manual, ASA Policy Statement #6. Note that all of the information required on the E/S 102 must be completed when this disposition is designated.

Accountability for Minor Equipment

Each Superintendent is accountable for equipment issued to the personnel in his or her area. Each employee is required to sign for tools and equipment in accordance with the Equipment/Tool Assignment form. The Superintendents will maintain these forms in their offices. Generally, Supervisors will sign for minor equipment not assignable to an individual.

Employees may be required to replace lost tools in accordance with the statement they sign. In the event of extenuating circumstances, Superintendents will decide whether the employee is accountable for the loss.

The appropriate Director may require spot checks of tool inventories on an unannounced basis.

Accountability for Major Equipment

Accountability for major equipment items is shared by each department director, superintendent, and the Facilities Services Cost Accounting & Billing Office. Each employee is required to sign a Major Equipment Assignment Card for each item. These forms are kept in the Cost Accounting & Billing Office. Generally, supervisors will sign for equipment not assignable to an individual.

Periodically, the Cost Accounting & Billing Office prepares a report of all major equipment assignments for inventory and audit. These should be annotated and initialed, and the attached cover letter signed. These signed reports have the same weight as the Equipment Assignment Cards and at the end of inventory, replace them in the files.

Any losses or major damages to major equipment must be reported immediately on the Form E/S 102 (form available from Cost Accounting & Billing Office). This form includes an evaluation of the reason for the loss and, if possible, a fixing of responsibility for the loss. In the event of extenuating circumstances, the appropriate Director may excuse an employee from liability.

Designated Responsibility for Equipment

Each director may designate an office with primary responsibility for maintaining records of Major Equipment for each Superintendent in the computerized Equipment & Tools system.

Each office so designated must ensure that all items of interest to the Asset Control Office will be reported using such procedures as Asset Control may establish. Each Superintendent may establish classifications of tools so tracked. The Cost Accounting & Billing Office maintains and audits the records for all Superintendents.

Accountability for Plant Equipment & Window Air Conditioners

Plant Equipment and Window Air Conditioners are maintained by the Facilities Services Division under the Preventive Maintenance program.

The Cost Accounting & Billing Office receives notice of all Plant Equipment purchased from an outside vendor by receipt of a copy of the purchase order.

Asset Management tags equipment costing over $5,000 with an Asset Property Number. Asset Management forwards Cost Accounting & Billing Office a report of equipment costing over $5,000 at which time location of equipment is identified.

Building Services' Preventive Maintenance group will inventory new plant equipment:

1. Notice to inventory purchases from an outside vendor will be issued as soon as complete payment is approved to the vendor or on project closing, whichever the preventive maintenance group is notified of first.
2. Notice to inventory purchases from the General Storeroom will be issued as soon as notice is received by the preventive maintenance group.

The preventive maintenance group will affix a Facilities Services #, and prepare the appropriate Data Card(s). The preventive maintenance group will then add the equipment to the Preventive Maintenance System:

Relocation of Plant Equipment

The supervisor of the shop that is relocating the equipment is responsible for preparing a Notice of Plant Equipment and Window Air Conditioners and forwarding to the preventive maintenance group. The Facilities Services # shall remain on the equipment. Equipment that is placed in storage is considered to be relocated.

Upon receipt of the Notice, the preventive maintenance group will make the appropriate changes to the Preventive Maintenance and the Equipment & Tool systems.

Surplus/Scrap of Plant Equipment and Window Air Conditioners:

When a piece of Plant Equipment and/or Window Air Conditioner is surplused or removed, the Facilities Services # will be removed from the Window Air Conditioner or Plant Equipment before it is transported to the Surplus Property Office. The supervisor of the shop that is relocating the equipment is responsible for preparing the Notice of Plant Equipment and Window Air Conditioners to report the removal. The Facilities Services # should be affixed to the form, as the equipment is no longer to be maintained. If the equipment has an Asset Property Number attached, this number is to remain on the equipment. This procedure and the preparation of the Surplus Property & Drayage Form are covered in the University Business Manual under Equipment.

The completed Notice, accompanied by the Form, is delivered to the Cost Accounting & Billing Group final routing & processing. Cost Accounting & Billing will notify the Preventive Maintenance Group so that the equipment is removed from the preventive maintenance system.

Forms for Equipment Tracking & Reporting

The forms used for Equipment Accountability can be obtained from the Cost Accounting & Billing Group.

Related Requirements

External Regulations

• 602 - University of North Carolina at Chapel Hill Policy on Acquisition of Equipment
• 603 - Equipment Inventory and Reporting Policy

Contact Information

Primary Contact

Name: Howard Wertheimer

Telephone: 919-962-3456

Email: werthy@unc.edu