M3 – Asset Inventory Control

Originator: Materials Management
Approver: CMC
Effective: December 9, 1997
Replaces: New

Introduction

The purpose of this policy is to establish and maintain control over RRC Polytech inventory assets. It is the responsibility of managers to maintain control of all assets assigned to their budget centres. The Materials Management department will maintain the central record of assets assigned to each budget centre and will review these records annually with the managers. A periodic audit test of the records will be conducted by Materials Management to ensure records accurately reflect the assets of the College.

Definition

Capital expenditures for RRC Polytech are defined to be:

• purchase of items greater than $750 with an estimated useful life greater than one year which are not intended for resale;
• a unit comprised of several pieces which cannot function alone and are collectively valued at over $750 but which individually may be under $750 (e.g., modular furniture, computer hardware);
• significant computer software purchases if over $750 and if deemed to have a useful life exceeding one year (purchases considered to be significant would be first-time purchases of new complex software packages and would not normally include upgrades of existing software. Please consult with Director, Financial Services for specific guidance.)

Procedures

1. The Materials Management department will be responsible for the maintenance of the asset inventory records and the annual audit of assets.
2. Assets approved in the annual budget shall be acquired through the Purchasing Department in accordance with purchasing policy and procedures.
3. Assets also may be acquired as donations-in-kind. Donors of gifts-in-kind will be issued an official charitable receipt for the fair market value of the property received. The fair market value will normally be determined as a result of an accredited appraisal, which should accompany the donation, acquired “at arm’s length” from both the College and the donor.
4. All assets that are acquired by the College must be formally received by the Materials Management department. Materials Management will complete a pre-numbered asset inventory record form #FS10 for each asset and forward it to the Controller’s Office.
5. The Controller’s Office shall record the information on the asset inventory form into the assets inventory system and add information on the cost of the asset obtained from the supplier’s invoice.
6. Annually, the Materials Management department will send a complete list of assets assigned to each budget centre to the appropriate budget centre manager. It is the responsibility of the budget centre manager to confirm the physical existence and location of each asset and return the list within 45 days from the date of the request. Any asset not accounted for must be identified when the list is returned to Materials Management. Every effort shall be made by the responsible budget centre manager to locate any asset that is missing. As soon as it has been determined that an asset is missing, the loss should be reported to the Security department for investigation. Materials Management will amend the status of the asset in the asset inventory records.
7. The Materials Management department may at any time conduct a physical audit of the assets of any budget centre. Over a period of time, the department will conduct physical audits of all budget centres to confirm the existence of all College assets and ensure that all assets are identified as College property.
8. The disposal of any asset identified as being surplus shall be handled through the Materials Management department as per policy E2 – Disposal of Obsolete & Surplus Furnishings and Equipment.