I. PURPOSE AND SCOPE

This document provides consistent operational practices for conducting the annual inventory of capital and controlled assets to ensure compliance with state laws and regulations, Board of Regents policy, University of Houston and University of Houston System Administration policies and procedures. As an agency of the State of Texas, the University of Houston is subject to the policies and procedures set forth in the State Property Accounting (SPA) Policy and Procedures Manual and the State Property Accounting User’s Manual (SPAUM). This document applies to all university academic, administrative and research departments and faculty, staff and students.

II. POLICY STATEMENT

A physical inventory of all capital and controlled assets must be completed at least once a year. All academic, administrative and research departments must comply with Property Management’s instructions and deadlines when conducting their annual inventories. College/Division business administrators are responsible for ensuring that their designated property custodian(s) conduct the annual physical inventory in accordance with instructions and deadlines established by Property Management.

III. DEFINITIONS

Definitions of the terms used in this document may be found in MAPP 03.03.01, MAPP 03.03.02, MAPP 03.03.03, and MAPP 03.03.05.

IV. GENERAL PROVISIONS

1. Inventory reports, along with detailed instructions, forms and deadlines for responding, will be distributed to the appropriate college/division business administrator, or their designated property custodian(s), at the time of the annual inventory during the pre-inventory training session(s) held by Property Management. Inventory reports that are not received by the designated property custodian(s) during the pre-inventory training session(s) will be forwarded to the appropriate college/division business administrator for distribution to the individual(s) responsible for conducting the physical inventory. The inventory reports will include, but are not limited to, these specific items:
   1. University inventory tag number.

   2. Description of the item.

   3. Serial number, when applicable.

   4. Location (building and room number).

2. Property Management will verify the physical inventory reports submitted by departments on a sampling basis. This supplemental inventory will serve as an audit of the departmental inventories to ensure accurate results.

V. CONDUCTING THE ANNUAL INVENTORY

The annual physical inventory of capital and controlled assets will be performed in the following sequence:

1. Property Management will generate and distribute reports to the property custodians or college/division business administrators identifying capital and controlled assets by department codes and university inventory tag numbers.

2. The college/division business administrators, and their designated property custodians, receive the reports and are responsible for: (1) ensuring that departmental employees perform the physical inventory, and (2) verifying that the information recorded in the university’s inventory system is accurate. Once the physical inventory has been completed, the college/division business administrators will inform Property Management of any necessary changes that need to be made by returning the reports with corrections. Items that cannot be located must be reported as either missing or stolen using the “Missing or Stolen Property Report for State Departments, Institutions, and Agencies” Form (in those cases where theft is suspected, refer to MAPP 03.03.03 - Maintenance and Control Responsibilities, Section XV).

3. Property Management updates the university’s inventory system based upon the information contained in the edited reports received from the college/division business administrators and then distributes revised reports to college/division business administrators with copies going to property custodians.

4. College/division business administrators are responsible for verifying that the information contained in the reports is accurate and that any problems regarding unconfirmed items are resolved. Any information that is found to be incorrect should be corrected on the report that should be returned to Property Management. Items which cannot be located must be reported as either missing or stolen using the “Missing or Stolen Property Report for State Departments, Institutions, and Agencies” Form (in those cases where theft is suspected, refer to MAPP 03.03.03 - Maintenance and Control Responsibilities, Section XV).

5. Property Management updates the university’s inventory system based upon the information contained in the edited reports received from the college/division business administrators and then distributes revised reports to deans and directors with copies going to the college/division business administrators. If inaccurate or incomplete information is still found on the reports, corrections should be submitted to Property Management.

6. Property Management updates the university’s inventory system, if necessary, and then distributes revised reports to the vice presidents, with copies going to deans, directors, and the college/division business administrators. If inaccurate or incomplete information is still found on the reports, corrections should be submitted to Property Management.

7. Property Management updates the property management information system’s database prior to sending the Annual Inventory Report to the State Auditor. After the inventory, a new departmental listing is provided to each property custodian who should review the revised listing and verify that changes were made where necessary.

V. REVIEW AND RESPONSIBILITY

Responsible Party: Associate Vice President for Finance

Review: Every three years, on or before December 1

VI. APPROVAL

John M. Rudley, Vice President for Administration and Finance

Arthur K. Smith, President

Date of President's Approval: 05/23/03

VII. REFERENCES

• Index Terms:
  • Capital equipment
  • Inventory
  • Property custodian