Purpose In accordance with USM Policy VIII-1.10 – Policy for Capitalization and Inventory Control, University of Maryland Global Campus (“University” or “UMGC”) has established inventory standards and procedures to ensure the safeguarding of and accounting for University assets. This policy defines the roles and responsibilities for inventory control and provides the frequency of conducting a physical inventory of equipment as required by USM.
Capital Equipment: Equipment that is not permanently affixed to buildings, has a useful life greater than one year, and has a unit cost of $5,000 or more except for items predominantly composed of glass, rubber, cloth, and equipment held for resale.
Tracked Non-Capital Equipment: Equipment with a unit value greater than $1,000 but less than $5,000, is desirable, easily susceptible to theft, easily converted to personal use, and has a useful life greater than one year. All computers are tracked regardless of the value up to $5,000.
Capitalization and Inventory Controls
The Office of Finance will maintain central records of all Capital and Tracked Non-Capital Equipment assigned to each department. The Office of Finance will be responsible for the coordination of tagging the equipment when it is acquired, recording its manufacturer's serial number, and determining its disposition when it becomes obsolete, surplus, or inoperable.
IT-related equipment will be an exception. AccelerEd will be responsible for tagging items and forwarding the information to the Office of Finance for posting to the fixed asset management system.
A complete physical inventory will be taken every two years for Capital Equipment and every three years for Tracked Non-Capital Equipment. The Office of Finance will conduct this inventory and/or coordinate the inventory of Art or IT-related items with specific departments more familiar with the location of these items. At the conclusion of the physical inventory, a final list of all missing equipment will be reviewed and approved by the Chief Financial Officer, or their designee, before any adjustments are made to the inventory database.
Departments, consultants, and contractors will be responsible for notifying AccelerEd of any changes in the physical location or ownership of all IT-related Tracked Non-Capital Equipment. AccelerEd will then forward this information to the Office of Finance for recordation into the asset management system. The Office of Finance should be notified of all changes related to non-IT equipment.