Required Procedures:
The university is required to investigate every report of missing or stolen assets. When a department is unable to locate any item, the following procedures should be applied:
- Obtain the details of the missing item from the inventory records. This includes the description of the item, model number, serial number and the last recorded location of the item.
- Physically check the last recorded location and adjacent areas.
- Check with all individuals who has access to the area where the missing item(s) was last located.
- Review all equipment paperwork such as Surplus Property documentation, transfers and loan forms.
- If at any time during the investigation, it is suspected that a theft may have occurred, the Equipment Liaison must report the incident to the University Police Department for investigation and further action.
- If the missing item is located, the Equipment Liaison must notify Fixed Assets and the proper location will be recorded in the inventory records (TraQ).
When all equipment that was not located has been appropriately documented, Fixed Assets will calculate the book value of the equipment. Departments shall absorb the book value of the lost equipment and may receive a monetary penalty for the loss of equipment. The original cost minus depreciation will be used to determine book value as of June 30 and may be deducted from the department budget the following fiscal year.
Example:
A server was purchased one year ago at a cost of $8,000. The life expectancy for the server is five years. After one year, the asset is 1/5 depreciated (-$1,600). The original cost $8,000 – (minus) depreciated value $1,600 = Book Value of $6,400. The department budget will be reduced by $6,400 in the following fiscal year.”