Equipment Not Found Procedures
- The Financial Reporting staff notifies the liaison and the chair/director about the inventory findings and missing equipment on or about June 1 of each fiscal year.
- The liaison and the chair/director locate the missing assets.
- Financial Reporting will:
- Calculate the book value of equipment that remains missing.
- Determine the book value as of June 30 using the original cost minus depreciation.
- Deduct all missing equipment with a book value of $5,000 or more ($1,000 or more for laptops) from the department’s/office’s budget for the following fiscal year.
A desktop PC was purchased one year ago at a cost of $5,500. The life expectancy for PCs is five years. After one year, the asset is 20% depreciated ($1,100). The book value is 80% of original cost ($5,500). The department/office will lose $4,400 from the following fiscal year budget.