Asset, Inventory, and Surplus Management | KCTCS

Administrative Procedures

Asset, Inventory, & Surplus Management

Policy Number: 5.2.2-P

Current Effective Date: 06/01/2018

Original Effective Date: 08/21/2012

Revision Dates: 08/21/2012, 07/01/2013, 04/01/2015, 08/01/2015, 08/28/2017

Revision Number: 5

Revision Summary: Prior Business Procedure 2.2 & 2.9

Responsible Official: Director of Asset Management

References:

1. Purpose

To outline the administrative guidelines governing the management of assets, inventory, and surplus.

2. Scope

This procedure applies to all KCTCS colleges, Kentucky Fire Commission, and the Kentucky Board of Emergency Medical Services.

3. General

3.1

Assets and inventory are a major component of KCTCS resources.

3.2

The KCTCS Office of Facilities Support Services - Asset Management Office (AMO) has the responsibility for asset, inventory, and surplus management, with items being recorded in the PeopleSoft Asset Management (AM) Module and insured accordingly.

  1. Assets are identified as non-expendable items with a useful life of three or more years and costing $5,000 or more.
    1. Please see Business Procedure 5.3.13-P (Capital Assets).
    2. Leased equipment is considered capital asset with the exception of postage meters.
  2. Only the AMO is authorized to add assets to the PeopleSoft AM Module.
  3. Timely reporting of an asset is essential and should occur within 30 days of receipt.

3.3

Inventory is defined as non-expendable items with a useful life of three or more years and costing $1,000 to $4,999, including high-risk items $500-$999 such as computer, laptops, and iPads that can store sensitive information.

3.4

Computer related equipment such as desktop computers, laptops and iPads costing more than $200 but less than $500.00 must also be tracked in the PeopleSoft AM Module.

  1. Whenever possible such equipment will be assigned either to a permanent fixed location or to an individual employee to aid tracking and accountability and as a mechanism to help avoid information security breach by cleaning of its memory, removal of any licensed software, etc., when the item is no longer in service.

3.5

All assets and inventory must be physically verified each fiscal year.

3.6

With regard to the use of equipment, all applicable KCTCS, state and federal regulations and laws must be followed.

3.7

Inventory personnel will affix official property identification tags to newly acquired item(s) before placing them in service.

  1. Asset and inventory tags can be obtained from the AMO.
  2. If an item of equipment cannot be tagged, then it must be etched or marked.

3.8

An employee found to have used KCTCS owned or leased equipment for personal use and/or non-business related activities, resulting in the equipment being damaged or stolen, is responsible for repair and/or replacement of the equipment.

4. Asset Reporting

4.1

The System Office and each college must complete an annual verification of all assets assigned to their location by September 30 each fiscal year.

4.2

Each college must submit an asset report to the AMO by October 1, indicating the status (located or unlocated) of each capital asset and any updates that need to be made in the PeopleSoft AM Module.

  1. The Chief Business Officer of the college must certify the results on the report and submit the results via email or be copied on the email sent by the college inventory monitor.

4.3

During the period of October 1 to May 30, staff from the AMO will perform on-site audits of each college’s assets.

  1. A list of asset audit findings, including assets not located during the audit, location or description changes, and assets to be retired must be emailed to the college inventory monitor by the AMO.
  2. The college inventory monitor must submit an email response to the asset audit findings as soon as possible after an audit, but not later than June 15, for audits conducted late in the fiscal year.

4.4

The AMO will submit an Asset Verification Report to the Office of Financial Services by June 30, detailing assets disposed of as the result of college and AMO asset audits.

4.5

Only the AMO is authorized to remove assets from the PeopleSoft AM Module.

5. Inventory Reporting

5.1

All colleges and the System Office will conduct a physical verification of inventory each fiscal year.

5.2

Prior to April 30th, the inventory personnel must submit their findings to the AMO noting location changes, items to be removed, missing items, and any exceptions.

6. Donations

6.1

Donated assets and inventory are defined using the same value criteria as purchased equipment.

6.2

Donated assets believed to be valued at $5,000 or more must have a third party appraisal.

6.3

Gift in kind donation forms should accompany all donations.

7. Disposition of Surplus

7.1

Deleting assets and inventory from the PeopleSoft Asset Management Module is the responsibility of the AMO.

7.2

Prior to disposing of any equipment, form FM94 should be emailed to the AMO requesting approval for disposal.

  1. The disposal or trade-in of personal property must be in accordance with state and federal law as well as with KCTCS policy and procedure.
  2. Donated equipment may be disposed of using the same methods and require the same approvals as owned equipment.
  3. Donated equipment with a value of $5,000 or greater will not be disposed of until three years after the date of donation.
  4. When equipment is stolen, an investigation must be made by appropriate police agencies.
    1. For insurance claim purposes, a copy of the report concerning the investigation of the theft must be furnished to the AMO as soon as it can be obtained.

7.3

Equipment that is in good, operable condition and is surplus to the college’s or System Office's needs must be offered to KCTCS colleges by the AMO via email.

  1. If offered free of charge, the equipment will be given to the first college to respond to the email.
  2. If the college wishes to sell the item, the interested college offering the highest amount via an email response, will receive the equipment.
  3. Colleges will be given five business days to respond to the equipment offer.
  4. The AMO will complete the transfer of equipment in the PeopleSoft Asset Management Module.

 

7.4

When personal property no longer has a useful life, is damaged beyond repair, or is surplus to the College’s or System Office;s needs, discarding property may occur by several methods including, but not necessarily limited to:

  1. Intra-college or inter-college transfer.
  2. Use of the property as a trade-in the procurement of assets. 
  3. Transfer to an entity of government within the Commonwealth at a price determined by KCTCS or at no cost.
  4. Donation to a nonprofit organization is permitted when at a price determined by mutual consent or at no cost if in the Commonwealth’s best interest.
    1. The non-profit organization will be exempt from taxation under Section 501 (c)(3) of the Internal Revenue Code (excluding a religious organization), or a nonprofit organization eligible to receive surplus federal property pursuant to 41 C.F.R. 101-44.207(c), and organized under the laws of the Commonwealth, another state, or the District of Columbia, or chartered under an Act of Congress, lawfully doing business in the Commonwealth of Kentucky, and serving a public purpose of an essentially governmental, civic, educational, or charitable nature, after first receiving from the recipient agency the certification and evidence on nonprofit status.
  5. Restricted public sales to non-profit organizations served by KCTCS.
  6. Donation or sale of electronic devices to students.
    1. Computers and computer monitors may be given or sold to KCTCS students.
    2. Notice must be posted on campus at least two weeks prior to the give-away or sell.
    3. The posting or e-mail must include the price, if any, being charged and that equipment is available on a first come first serve basis, in as is condition, and one per student. 
    4. A CEDR form (FM100) must be completed for each item at the time of donation or sale and forwarded to the AMO. 
  7. Sale to the general public using GovDeals.com, sealed bids, or on campus auctions, which will be coordinated by theAMO. 
    1. Disposal to the public by sealed bid or on campus auctions shall be preceded by notice adequate to inform the public of the sale.
  8. Disposal is permitted in accordance with applicable state and federal waste management laws and regulations.
    1. When scrapping is the method of disposal chosen, electronic equipment such as computers, monitors, and televisions that may contain hazardous materials must be recycled and are not permitted to be disposed of in a trash receptacle. 
    2. All equipment that is able to store data must be sanitized to remove all sensitive information prior to disposal.