SUBJECT:  Inventory and Control Program for University-Owned 

PROCEDURE NO.:  2D:01:01H                     DATE:   July 1, 1994

SUPERSEDES PROCEDURE NO.:  2D:01:01H          DATED:  April 1, 1991


    "Equipment" as used in this Procedure includes furniture and
    similar items.  The provisions of this Procedure are applicable to
    the inventory, use and control of all University equipment.  The
    purposes of the equipment inventory and control program are to
    establish responsibility for equipment, provide for better
    utilization of equipment, facilitate the physical inventory, better
    establish insurance requirements, and comply with state policy.


    1.  GENERAL.  Vice presidents, deans, directors, department
        chairmen and activity heads are responsible for the
        custody, maintenance, and reasonable security of all
        equipment purchased for, or assigned to, their respective
        department or activity.  All University employees should be
        concerned with the proper care and security of any
        equipment which they use or observe.

    2.  ACKNOWLEDGEMENT OF RESPONSIBILITY.  Each official to whom
        equipment is assigned will sign some form acknowledging
        receipt and acceptance of responsibility for the item. 
        Signatures on Transfer Vouchers, Receiving Reports, or
        Equipment Transaction Records will serve to establish
        custodial responsibility.  Officials should secure written
        receipts relieving them of responsibility when items are
        removed from their area of responsibility.

    3.  OWNERSHIP.  Ownership of equipment items acquired by The
        University of Memphis rests with the State of Tennessee. 
        This is true even though the items are purchased from
        departmental funds or from special equipment appropriations
        or are acquired by gift or contract.  Equipment may be
        reassigned by proper authorities at any time.

    4.  LOANS AND REMOVAL FROM PREMISES.  University equipment is
        to be used only for University activities; personal use is
        not authorized.  When equipment is removed from the campus
        for repair, etc., a receipt should be secured.  Any other
        usage or removal from campus, including release into a
        faculty member's or employee's custody, must be authorized
        in writing at the department chairman/activity head level
        or higher and a copy of the authorization forwarded to the
        Property Section of the Accounting Office.  University 
        property removed from campus is not insured by the Uni-
        versity unless such removal is specifically approved
        by the State Director or Risk Management.  To request
        coverage for University equipment removed from campus,
        contact Mr. Ulysses Campbell, Assistant to the Director of

    5.  INDIVIDUAL RESPONSIBILITY.  Within a department or activity
        some individual should be responsible for each item of
        equipment.  The individual who has responsibility for each
        item should be subject to determination based on written
        acknowledgement in the event a loss occurs.  For items that
        are subject to regular changes in the assignment/responsi-
        bility, a method of recording who has responsibility should 
        be established.  

        of the Accounting Office is responsible for maintaining a
        computerized equipment inventory record, affixing decals to
        new acquisitions, reporting insurable values, and
        coordinating other aspects of the equipment inventory
        control program.  Departments and activities should contact
        the Property Section for guidance, assistance, and
        information relative to the equipment inventory program.

        department or activity with assigned equipment will
        designate one individual as the "Departmental Equipment
        Inventory Representative".  This individual will coordinate
        equipment inventory matters with the Property Section and
        carry out control responsibilities as assigned by the
        department/activity head.  The representative should be
        either the department/activity head or a person within the
        department who fully understands The U of M equipment
        inventory requirements.  The department/activity head is
        ultimately responsible for the correctness of inventory
        confirmations and other equipment matters.

        Departmental Equipment Inventory Representative should
        maintain a log of service calls/equipment maintenance
        records which documents the date of service, servicing
        vendor, type service performed, cost (if any), and purchase
        order number.  University Operating Procedure No.: 2D:03:05B, 
        Contractural Maintenance Service Agreements for University 
        Owned Equipment, should be consulted for more information.  
        By maintaining the service log, departments will be able to 
        maintain information on maintenance and repair costs and 
        frequency of malfunction or repairs;  the University will 
        thus have the data necessary to determine the cost effective-
        ness of maintenance agreements for various types of equipment, 
        and will also be able to determine when the useful life of the
        equipment has expired.


    1.  DECAL NUMBERS.  Basic control and identification of an
        equipment item is usually accomplished through a
        serially-numbered metal decal attached to the equipment
        item.  Some items do not have decals affixed because of the
        type of item; if possible, the number is etched or painted
        on the item.

    2.  ADDITIONS.  The Property Section of the Accounting Office
        is responsible for affixing a decal as soon as possible
        after the item is acquired.  The Property Clerk will
        contact the department to obtain the building and room
        number where the item is located.  The Property Section
        will visit each building at least once each month to affix
        decals to those items the location of which has been

    3.  DELETIONS FROM INVENTORY.  Equipment can be deleted from
        the inventory only by following the procedures discussed in
        Section E.  It is not acceptable to cross out an item from
        the annual physical inventory confirmation listing. 
        "Cannibalizing", or combining the usable parts of two items
        to make one workable unit, is allowed only upon authorization 
        by the next level of authority.

    4.  TRANSFERS.  Transfers between departments will be
        accomplished by means of an Equipment Transaction Record.
        When a transfer is made, the department receiving the 
        equipment will indicate the new location and forward the 
        original copy of the Transaction Record to the Property 
        Section.  Signatures should always be secured when
        equipment is transferred or released to any other
        department or activity.

    5.  REPORTING CHANGES.  Notification of new locations should be
        sent to the Property Section immediately upon transfer of
        items between buildings (these are needed immediately for
        proper insurance coverage on contents).  Transfers between
        rooms are not required to be reported to the Property
        Section until annual confirmation.  Some data items may be
        changed if the department desires; by notifying the
        Property Section. 

        When major relocations, transfers, or new acquisitions are
        undertaken, departments should contact the Property
        Section.  Special procedures can frequently be arranged to
        minimize the effort of inventory records maintenance.

    6.  ANNUAL PHYSICAL CONFIRMATION.  A physical inventory of all
        equipment (including equipment temporarily located off-campus) 
        will be made annually.  Equipment listings, instructions and 
        other necessary materials for the inventory will be produced 
        each year and sent to department chairmen and activity heads.

    7.  INVENTORY INFORMATION.  The information items listed below
        are maintained in the Property Section and are available
        for use in the identification and location of University

        a.  Building numbers.

        b.  Standard room numbers for areas which do not have 
            actual room number designations.

        c.  Codes for the various types of equipment.

        d.  Source of funds for equipment acquisition.

        e.  Equipment description abbreviations.


    Equipment, for this program, is defined as those items which
    possess all the characteristics listed below.  Further assistance
    in the defining of individual items may be obtained by contacting
    the Property Section of the Accounting Office.

    1.  Movable - not built in or permanently attached to a
        building or structure.

    2.  Non-expendable - not consumed with use - more feasible to
        replace parts and/or repair than to replace the item.

    3.  Durable - has useful life of more than one year.

    4.  Unique - retains identity even when incorporated into a
        different or more complex unit.

    5.  Has a relatively high unit cost - five hundred dollars
        ($500) or more.  Generally, items costing under $500 will
        be excluded unless a specific determination is made to
        include them, for example, when the item is part of an
        initial purchase of a data processing system. 


    Deletions from the equipment records are necessary when items are
    lost, stolen, destroyed, traded, sold, become unserviceable or
    obsolete, or are declared surplus to departmental needs.

    1.  LOST, STOLEN, OR DESTROYED items must be reported
        immediately to the Security Office on a "Report of Lost or
        Stolen Property" form, available from the Security Office. 
        The Security Office will forward a designated copy of the
        report to the Property Section.  Refer to University
        Operating Procedure No.:  2D:06:03A, Lost or Stolen
        University Property for further information.

    2.  TRADE-INS.  When a trade-in is desired, the department
        initiates an Equipment Transaction Record noting the 
        decal number, general description, account number, and 
        the words "trade-in".  The relinquishing department signs 
        Section A.  The Record, along with a purchase requisition 
        for the new equipment, is sent to the Purchasing Department.  
        At the Director of Purchasing's discretion, based on know-
        ledge of University needs, the item may be traded.  When the 
        property is relinquished, the department sends its decal and 
        the Equipment Inventory Record to the Property Section.  The 
        Director of Purchasing signs Section A of the Equipment Trans-
        action Record and prints "Trade-In" for account number, then 
        forwards a copy of the purchase order and the signed Trans-
        action Record to the Property Section.  With the above author-
        ization, the Property Clerk deletes the item from the equipment

        If the Director of Purchasing deems that it is more
        economically feasible for the University to keep the
        equipment in Stores Inventory (this is not surplus
        inventory), for subsequent reissue to another user, the
        Director initiates a Transfer Voucher reducing the
        department's equipment expense by the dollar evaluation of
        the used equipment.  Dollar evaluation is established
        solely by the Director of Purchasing, based on the item's
        condition and disposal value.  When the equipment is
        physically removed, the decal, the Equipment Inventory
        Record Card, and an equipment Transaction Record with
        Section A signed by both the department and Central
        Receiving are sent to the Property Section for deletion. 
        Central Receiving should print "Stores Inventory" for
        account number in Section A.

        When the item is reissued from Stores Inventory to another
        University user, it is charged out at the original price on
        the Transfer Voucher plus costs of any repairs necessary to
        restore it to useable condition.

    3.  SURPLUS ITEMS.  The department chairman or activity head
        notifies the Director of Purchasing by submitting an
        Equipment Transactions Record, including the completion of 
        Section B.  The Director of Purchasing will then direct 
        Central Receiving to transport it to South Campus storage.  
        The relinquishing department obtains the signature of the 
        representative from Central Receiving, and forwards the 
        executed document to the Property Section.

    4.  CANNIBALIZATION.  Requests for cannibalization of equipment
        should be made to the next higher level of authority using
        an Equipment Transaction Record, including the completion of 
        Section C.  After the request is approved, the original of 
        the Record, together with decals from the equipment items 
        and the related Equipment Cards, should be forwarded to the 
        Property Section of the Accounting Office.

    5.  ON SITE DISPOSAL.  On some occasions equipment needs to be
        disposed of and the item does not have a salvage value
        worth the effort to try to salvage.  In these cases the
        department should submit an Equipment Transaction Record
        including the completion of Section C.  After approval by 
        the next higher level of authority, the original of the 
        Record, together with decals from the equipment, should be 
        sent to the Property Section of the Accounting Office.

    6.  ZERO VALUE.  Equipment items which have about reached their
        useful lives are frequently of limited value to the
        department or activity, but have enough value that the
        department desires to retain the item.  If equipment items
        with only a nominal value will be retained, it is
        appropriate to remove them from the "equipment" classi-
        fication.  In these instances, the department or activity 
        should submit an Equipment Transaction Record with Section D 
        completed.  After the Record is approved by the Manager of 
        Financial Reporting, the original of the Record, together 
        with decals from the equipment should be sent to the Property 
        Section of the Accounting Office.