海角官方首页

Non-Capital Assets

Financial Affairs, Office of the Controller  |  Approved November 1, 2015

Purpose

Establish instructions and guidelines to use in exercising proper control, custodial care, maintenance, security, and disposition over Non-Capital Assets (NCAs).

Applicability

Operational Units (schools, divisions, departments) and individuals responsible for the acquisition, distribution, storage, disposal, and management of NCAs owned and used by 海角官方首页, if purchased using 海角官方首页 Funds, purchased with an Affiliate organization’s funds, or donated to 海角官方首页.

Instructions

** UPDATED MAY 21, 2018 to Add Asset Disposal System **

General Guidelines

All Operational Units and individuals are expected to take appropriate and responsible custodial care to protect NCAs.

Operational Unit managers and other personnel with fiscal responsibility must exercise good judgment and demonstrate governance of all activities related to NCAs through the use of budgetary planning, recordkeeping, analysis, and other appropriate measures satisfying this procedure or exceeding the procedure’s requirements as an Operational Unit may require to safeguard its NCAs.

Internal controls must be sufficient to minimize losses of NCAs.  This procedure addresses minimum internal controls required for all 海角官方首页 Operational Units.  Individual schools/departments may determine that stricter controls are needed to achieve objectives.  Similarly, Financial Services or Management Advisory Services may impose stricter controls on individual schools/departments as needed to ensure compliance with State, USM, and 海角官方首页 policies. 

At a minimum, all 海角官方首页 Operational Units are required to do the following:

1. Properly segregate duties in the following processes:
   1. Authorization
   2. Purchasing
   3. Custody of assets
   4. Recordkeeping
2. Adhere to established budgetary guidelines for all NCA purchases.
3. Properly follow , including the use of the Corporate Purchasing Card (P-card).  NCA purchases should be reasonable and necessary to meet the objectives of the Operational Unit
4. Identify an NCA Custodian having responsibilities including oversight of NCA processes, such as tagging NCAs, placing NCAs into service, disposing of NCAs, and recordkeeping related to NCAs.
5. Tag each NCA with a 海角官方首页 asset tag.
6. Record NCA purchases via requisitions to General Ledger (GL) Account 3953–Non-Capital Assets.
7. Reallocate P-card purchases to NCA GL account 3953-Non-Capital Assets within 30 days of the date the P-card is charged.
8. Ensure every NCA purchase is substantiated by its purpose.
9. Properly document disposal of NCAs.

Each assigned Designated Non-Capital Asset (DNCA) requires a fully executed Employee Equipment Acknowledgment Form (EEAF).  Use of the EEAF System to generate and store EEAFs is mandatory.

1. The  is an online software application designed to assist Operational Units in managing assets, including DNCAs.  The EEAF System is used by Operational Unit NCA Custodians and 海角官方首页 employees and Affiliates.
   1. Operational Unit NCA Custodians
      1. Record NCA information, employee and 海角官方首页 Affiliate assignments of NCAs, and NCA dispositions.  See Procedures Section-Recordkeeping.
      2. Assign DNCAs to employees and 海角官方首页 Affiliates.
      3. Run status reports.
      4. Access to EEAF system is granted by Financial Services-General Accounting.
   2. Employees/Affiliates
      1. Accept terms and conditions for assigned DNCAs through use of the EEAF.
      2. View assigned and returned DNCAs.
      3. Access to EEAF is available via My海角官方首页.

Operational Unit records concerning an NCA are subject to audit for a period of five years from the date of its purchase.  Upon request, the Operational Unit must be able to produce NCA purchase records, EEAFs (designated NCAs only), and produce disposal records (if applicable) of the NCA.    

An Operational Unit may transfer an NCA to another Operational Unit with the written approval of both Operational Units.  Upon transfer of an NCA, recordkeeping and appropriate disposal are the responsibility of the receiving Operational Unit.

海角官方首页 may visually inspect NCAs at any time.

All NCAs

1. Record to GL account 3953 - Non-Capital Assets.
2. Apply a 海角官方首页 asset tag to the NCA.
3. Employ Operational Unit procedures to satisfy audit criteria stated in the General Guidelines.  For example, Operational Units may document serial numbers, asset tag numbers, location, recipient, or other information on purchase records to identify the NCAs purchased.

Designated Non-Capital Assets (DNCAs)

1. The following NCAs are classified as DNCAs:
   1. Laptops
   2. Tablets
   3. Audio/visual equipment
   4. NCAs located in a residence
   5. OPTIONAL- Individual schools or departments may choose to classify additional items as DNCAs.  Examples include:
      1. Mobile phones
      2. Desktop computers
      3. Equipment with an Acquisition Cost less than $1,000 located in a residence
2. All DNCAs must be entered into the within 30 days of purchase.
3. Assigned DNCAs require a fully executed EEAF within 30 days of assignment.

Disposals

1. All property must be disposed of in accordance with 海角官方首页 Policy VIII-1.20(A) Disposal of Surplus Personal Property. 
2. The disposal of computer equipment must also comply with 海角官方首页 Policy X-99.08(A) on Disposal of Media Containing Data.
3. NCAs that contain data must be disposed via the IT Disposal System. 
4. NCAs that do not contain data muste be disposed via the . Send the completed form to FS-GA, The Saratoga Building, Room 02-125.
5. DNCAs must be marked as disposed in the EEAF System.

Recordkeeping

Each Operational Unit is required to maintain records related to all its NCAs.  At a minimum these records should include the following:

1. P-card records (approved and signed transaction logs and reconciliations, receipts, audit reviews, cardholder statements, and any additional supporting documentation).
2. Asset records for DNCAs entered into the EEAF system.  The following data is maintained in the EEAF system:
   1. Asset type and description
   2. Serial number 
   3. Responsible Employee or 海角官方首页 Affiliate
   4. Date assigned
   5. EEAF completed with
      1. Employee/Affiliate name and ID
      2. Department name
      3. NCA description, date issued
      4. NCA serial number
      5. Terms and conditions
      6. NCA Custodian
      7. Disposal/Transfer Date 

Violation of Policy or Procedure

Any employee of 海角官方首页 who intentionally violates 海角官方首页 policies or procedures is subject to disciplinary action by 海角官方首页 up to and including termination of employment.  An employee who discovers that an NCA assigned to him is missing or damaged must immediately notify the employee’s asset custodian and supervisor.  A 海角官方首页 Affiliate who violates the 海角官方首页 policy or procedure concerning NCAs will be reported to the Affiliate’s employer, denied Affiliate privileges, and be required to return NCAs owned by 海角官方首页. 

海角官方首页 employees and Affiliates who misuse or misappropriate NCAs in violation of law may be referred for criminal investigation possibly resulting in prosecution.

Exceptions

1. Exceptions to this proceduremust be approved in writing by the University Controller (UC) in FS.
   1. Procedure exception requests must be submitted to the UC using the Policy or Procedure Exception Request Form available on the FS website. 
   2. Procedure exception requests must be signed/e-mailed by the Department Head or designee.
2. Exceptions to the related policy, , must be approved in writing by the CBFO.
   1. Policy exception requests must be submitted to the UC using the Policy or Procedure Exception Request Form.
   2. Policy exception requests must be signed by the appropriate Dean/Vice President or Associate Dean/AVP.

Questions?  Contact the General Accounting Manager, Financial Services at 410-706-6025.

RESPONSIBILITIES

 Employee/Affiliate

• Accept the terms and conditions on the EEAF for any DNCA assigned to the employee/Affiliate.
• Exercise diligence in the proper care, use, and control of NCAs and the data they may contain.
• Immediately report lost, stolen, or damaged NCAs to the supervisor of the employee or, for an Affiliates, the appropriate 海角官方首页 fiscal administrator.
• Return NCAs to the issuing Operational Unit when no longer used for 海角官方首页 purposes.

 Operational Units

• Maintain appropriate segregation of duties and internal control procedures.
• Ensure that NCAs are tagged with a 海角官方首页 asset tag.
• Ensure that EEAFs are completed for DNCAs.
• Ensure that NCAs are properly disposed in accordance with CITS policies and procedures.
• Retain all appropriate documentation and records in the Operational Unit.

 Department of Financial Services-General Accounting

• Provide Operational Units with 海角官方首页 asset tags.
• Review activity in GL account 3953 - Non-Capital Assets and in EEAFs.
• Manage access to the EEAF System.

Definitions and Terms

Acquisition Cost - Cost or value of an NCA which is recorded in 海角官方首页 financial records.  Acquisition Cost includes the asset cost, tax, shipping, setup costs, and discounts.  Acquisition Cost does not include additional items listed separately on the invoice, unless the additional items are required components to complete the NCA.  For example, application software (e.g. Microsoft Office, Adobe, etc.) listed separately on an invoice for a laptop is not included in the laptop Acquisition Cost.  However, operating system software (e.g. Windows, Linux, etc.), memory, or other additions listed on the invoice that are integral to the laptop are included in the Acquisition Cost. 

Authorized Affiliate Employee - Person employed by an entity that has a relationship with 海角官方首页 authorized by the Board of Regents or by law, e.g., faculty practice plan organizations, University of Maryland Baltimore Foundation (海角官方首页F) and other affiliated foundations, recognized incorporated alumni associations, recognized affiliated business entities, University of Maryland Medical System/University of Maryland Medical Center, and other University System of Maryland institutions.  An Authorized Affiliate Employee is responsible for the administration and reporting of 海角官方首页 resources. 

Corporate Purchasing Card (P-card) - Purchasing Card used for small purchases of business-related products and services.  The P-card is generally accepted at locations where VISA is accepted.  Regulations governing the use of the P-card are available through the 海角官方首页 Department of Procurement Services.

Custodial Care - Procedures taken to reduce the risk of loss or misappropriation.  Custodial care involves physical, analytical, and managerial tasks.  Examples include tagging equipment, securing assets in a locked room or cabinet when not in service, reviewing purchases and financial data, and segregating duties. 

Custodian - 海角官方首页 employee responsible for the care, maintenance, recordkeeping, control, and disposition of NCAs purchased with 海角官方首页 Funds.

Designated Non-Capital Asset (DNCA) - DNCAs are a subset of NCAs that require additional stewardship such as documentation showing assignment to 海角官方首页 employees or Affiliates.  Generally, DNCAs are desirable, easily converted to personal use, and susceptible to theft.  Typically, these assets are not fixed to a permanent structure and can be easily removed or carried.   Examples include laptops, tablets, audio/visual equipment, and NCAs located in a residence. 

Employee Equipment Acknowledgment Form (EEAF) - Agreement between 海角官方首页 and an employee/affiliate that describes the employee/affiliate’s responsibilities and 海角官方首页’s rights to recover NCAs described on the form.  The terms and conditions address lost, stolen, or damaged NCAs.  EEAFs are generated and stored in the EEAF system.

General Ledger Account - Code used in the university’s general ledger (GL) to record revenues and expenditures, assets, liabilities, and fund balance.

Non-Capital Asset (NCA) - Equipment or other physical assets with an Acquisition Cost of $1,000 or more but less than $5,000 per unit and with a useful life greater than one year. 

海角官方首页 Funds - All funds administered by 海角官方首页, regardless of fund source.  海角官方首页 Funds include State appropriated general funds, tuition, fees, and other income, as well as auxiliary funds, revolving/discretionary funds, Designated Research Initiative Funds, gifts, contract or grant revenues, and other restricted funds.

Forms:

Forms can be obtained from the :

• - Record NCA disposals in accordance with 海角官方首页 Policy VIII – 1.20(A) Disposal of Surplus Personal Property.
• Policy or Procedure Exception Request - Request an exception for circumstances that are in the best interest of the school or department but do not fall within the guidelines prescribed by the policy or procedure.

Additional Guidance:

Non-Capital Assets

Training and Related Resources

Purchasing card (P-card)

•  
• In the My海角官方首页 portal Enterprise Menu: 海角官方首页 System Tutorials> Pro Card Reallocation
• Corporate Purchasing Card Instructions

 Requisitions

• In the My海角官方首页 portal Enterprise Menu: 海角官方首页 System Tutorials> Managing Requisitions