1. Physical inventories are completed to secure university assets.
2. To verify location for compliance with OMB Circular A110
3. To assist organizations with effective management of capital equipment.

To ensure compliance, the State Board of Accounts selects an audit sample from the university files on an annual basis. In addition Federal Agencies also request equipment lists for auditing purposes on a regular basis.

Each organization is responsible for inventorying those assets capitalized under their organization code in the Financial Information System (FIS).

The inventory process is as follows:

1. The Campus Capital Asset Office will contact your organization's inventory representative to schedule your inventory date. On the day your inventory is to start, a representative from the Campus Capital Asset Office will deliver the Trakkers and train your inventory representative on the use of the Trakkers.

Untagged Assets not on Equipment List:

2. If an untagged asset with a value of $5,000 or more is found, and is not on your equipment list, the inventory representative should report to the item to the Campus Capital Asset Office. The Campus Capital Asset Office will need to know how the equipment was acquired by your organization (i.e., Gift, Transfer-in, IU Purchase.)
1. Gifts
   Gifts of capital assets occur either by a donation to the IU Foundation or by a direct donation to an organization. The University Capital Asset Office creates gift assets through reports received from the IU Foundation. If a gift asset is not currently on your inventory we need to determine if the gift has been reported to the IU Foundation.

2. Transfers-in
   Transfer-in capital assets are those assets received from an external organization (unusually another university) or government surplus. The following information is needed by the University Capital Asset Office to create the assets:
   1. Account Number ( owner account)
   2. Source of Acquisition
   3. Manufacture
   4. Description
   5. Location (campus, building, room)
   6. Fair Market Value
   7. Payment Account Number ( this account will have income/expense posted to it)

3. IU Purchase
   If the equipment was purchased through the IU procurement system we will need the purchase order number to research why the item was not capitalized. It may be the equipment was expensed incorrectly when purchased. Assets that were expensed incorrectly in a prior fiscal year are added to the asset database as "Found." If the error occurred in the current fiscal year a General Error Correction can be issued to correctly capitalize the asset. Another possibility is that asset was retired in error. If this is the case the retired asset will only be re-created as Found only if the asset has a net book value greater than or equal to the capitalization threshold. If the net book value is below the capitalization threshold the IU tag will be removed, and the asset will not be created.

Untagged Asset on Equipment List

3. If an asset is missing the IU tag number contact your Campus Capital Asset Office to acquire a new tag for the equipment. Using the Locating Maintenance screen you can update the tag number. Retrieve the asset number and enter your new tag number in the field titled "New IU Number." Be sure to click on the save button before exiting the screen.
4. After the Trakkers are returned to the Capital Asset Office, two reports may be generated:

1. Bar-code Error Document - identifies problems encountered during the scan. When uploading the Trakker file, any records that do not pass validity checks against the asset database are sent to an Inventory Error Document. This document is normally forwarded to the organization for processing.

2. Inventory Reconciliation Report - lists equipment not scanned. Inventory reconciliation is the process of completing a physical inventory by resolving assets not scanned, or unable to be scanned by the Trakker. The report will include items generated from the Inventory Error Document that were not resolved before the reconciliation report is run. When these assets are located the Capital Asset System can be updated using the Location Maintenance screen, or the Capital Asset Maintenance screen.
5. Organizations will be given a minimum of time to process their reconciliation report and to return the signed inventory certification letter prior to June 30th to their Campus Capital Asset Office.

The scheduled start date for any organization will be no later than the average number of days given to reconcile the inventory plus one week prior to June 30th.

Example "Latest Possible Start Dates" for Fiscal Year 2007:

Total Number of Assets in Inventory	Average Number of Days Required to Reconcile Inventory	Latest Possible Start Date
1-100	15 days	June 4
101-500	30 days	May 14
501-2,000	60 days	April 2
2,001 - Over	90 days	February 19

6. The Certification Letter denotes that all equipment is present and accounted for, or the necessary documents have been issued to update the asset database.

Certification Letters must by signed by the Fiscal Officer and returned to the Campus Capital Asset Office prior to June 30th. The Fiscal Officer will be held accountable for accuracy of the inventory in the event of an audit.

7. All assets on loan should have a current Equipment Loan Document in the Financial Information System (FIS).
   (See Financial Policy I-140 Off Campus)

8. Asset Transfers or Retirements must be processed with in 30 days of equipment movement.
   (See CSOP 2.0 Asset Retirement )
   (See CSOP 3.0 Asset Transfer)

9. If your assets are selected for an audit your organization will be expected to locate the assets for physical inventory inspection. The audit will be coordinated with the Campus Capital Asset Office.
   (See Financial Accounting Policy 1-170 Custody and Initial Physical Confirmation of Capital Moveable Equipment)

Equipment. The term "equipment" includes delivery equipment, office equipment, machinery, furniture and fixtures, factory equipment and similar fixed assets.

Trakker is a handheld data collection terminal used to scan the IU tag number affixed to equipment.