At System Offices, the department head is the Accountable Property Officer (APO) for his or her department. The APO designates an Alternate APO. An Alternate APO has many important responsibilities related to this title. If you are the Alternate APO, you have been delegated the responsibility of keeping track of all inventoried items in your department. APOs or Alternate APOs must know where all inventoried assets in their department are located at all times. APOs or Alternate APOs must have a method for locating any inventory item whether on-site or off-site. The easiest way to do this is to update equipment locations in FAMIS and keep signout logs for items that may be checked out (i.e. a laptop computer that is shared by all employees of a department). Also, APOs and Alternate APOs are responsible for ensuring that their department's assets are secured in the manner that is most likely to prevent theft, loss, damage, or misuse of property. The pertinent information that is necessary to perform these tasks is in the Texas A&M University System Asset Management Manual (AMM).
Proper paperwork must be completed by APOs or Alternate APOs to add new items or to remove items from their department's inventory. The System Offices property forms - and explanations of the forms - can be obtained here.
What is FFX?
System Offices inventoried items are tracked in FAMIS in the Fixed Asset module (FFX). Click here to view a list of FFX screens that Alternate APOs will find helpful. If you don't have access to FFX or need a refresher course on FFX, please contact one of the System Offices FAMIS Security Officers.
What must be inventoried?
Equipment costing $5,000 or more, with a useful life of more than one-year, must be inventoried because it is a capital purchase. Equipment is defined as non-consumable property which is owned or received by System Offices. FAMIS expense object codes 8400-8479 are all for capital equipment purchases (i.e. computers, printers, office furnishings, etc. that cost $5,000 or more). In addition, System Offices must inventory certain controlled assets. These are specific items costing less than $5,000, but which are highly susceptible to theft or misuse. Expense object codes 5775-5799 are for items that are controlled but not capitalized. Examples of controlled assets are computers, non-portable printers, and televisions costing between $500 and $4,999.99. Both capital purchases and controlled items must be inventoried. A list of frequently used expense object codes and their corresponding class codes can be found here.
What is non-inventoried equipment?
Equipment that does not meet the above defined threshold to be inventoried is considered to be non-inventoried (N/I). In other words, if a piece of equipment is not capitalized or controlled, it is N/I. Examples include printers costing less than $500 and office furniture costing less than $5,000. If equipment is priced close to the threshold for inventory but does not meet it (i.e. a desk costing $4,990), you should still consider putting a tag on the item that shows that it belongs to the State of Texas. But instead of writing an asset number on the tag, write "N/I". This way, at annual inventory, you will not be concerned when you cannot find the inventory number on the item. This will greatly help avoid confusion in future years.
What is an inventory number?
Once property that needs to be inventoried has been received, it needs an asset number (also called an inventory number). This is a ten-digit number identifying the equipment. If you are using barcode labels your asset number will be 12 digits with the first two numbers being used to identify campus code. The number normally begins with the fiscal year of purchase. If you are not using on-line purchasing you must contact one of the System Offices Property Managers to get an asset number. Each piece of property needs a unique number. Within ten calendar days of receipt, you must label the new equipment with its asset number and the label must also declare "Property of the State of Texas". The System Offices Business Office will provide additional labels if needed. Barcode labels will be provided by System Offices Business Office on a monthly basis for new inventoried assets. Labeling property helps prevent theft, facilitates the audit process, and is required by State law.
What is a TBAR006/TBAR051?
The TBAR006 (Asset Control Sheet) and the TBAR051(Transfer within System Part) are reports that are automatically generated by FAMIS if your department had activity in FFX the preceding month. The TBAR006 will generate if your department purchased, acquired, or disposed of equipment. The TBAR051 will generate if your department transfered equipment within System Offices. When you receive one or both reports, please confirm that all information on them is accurate. The TBAR006/TBAR051 reflects the information that is in FFX in regard to your asset. Most important, for new equipment, make sure that the asset number on the TBAR006 matches the asset number you marked on the actual asset. Only if there are changes/discrepancies should these be returned to the System Offices Property Managers; otherwise, please keep them for your departmental records.
What if an asset is improved or a part replaced?
If an improvement is made to an asset that materially increases the value of the asset, this must be reflected in the asset's total value. When the value or useful life of the asset is increased by 25% or more, or the improvement itself constitutes a capital event, the value of the asset shall be modified by the cost of the improvement. This is accomplished by filling out the Equipment Information Sheet. At the top of the sheet, circle "Add To", then put the existing asset's inventory number, and the cost of the improvement. Then under "Additional Comments" explain why value is being added. No other data is required because the rest of the information is already in FAMIS. For those departments that use on-line purchasing you can "Add To" an existing asset on FAMIS FRS screen 360 (option 1).
In the case of replacement, after adjusting the cost of the replacement item over the original item being replaced, the adjustment must materially increase the value or estimated useful life of the asset. The value shall be adjusted to an amount equal to the replacement component or part, less the value of the original component or part. For example, if a computer's hard drive crashes and needs to be replaced, generally the cost of the new hard drive will be expensed. This is because the old value of the computer included a hard drive; you have just switched the hard drive. However, if the new hard drive is significantly better than the old one (i.e. cost significantly more) and increases the total cost of the asset by 25% (after adjusting for the original purchase price of the old hard drive), then you must increase the value of the old asset by the difference.
What is cannibalized equipment?
Equipment that is dismantled and the parts are used in other assets has been cannibalized. Example: a computer that is outdated is going to be sent to A&M Surplus. Before doing this, you take the hard drive out of the computer because you can use it in another computer. The original computer has now been cannibalized. Cannibalized equipment must be removed from inventory with a Property Additions and Deletions form. The remaining parts or residual case, etc. MUST be sent to A&M Surplus. A blue Property Transfer form with the asset number marked as non-inventory (N/I) must accompany the pink Additions and Deletions form. It is suggested that you write the old asset number on the description line of the Property Transfer form. If the remaining parts are computer equipment, a Transfer of Computer Equipment form must also be attached to the blue Property Transfer Form.
Forward the completed and signed (by APO or Alternate APO) forms to the System Offices Property Manager. Please allow several days for us to process the paperwork before expecting the blue Property Transfer form returned to you. Unfortunately, we will not be able to give you a same day turn around on Surplus that needs to be cannibalized first.
When the cannibalized equipment is taken to Surplus, an employee at Surplus will sign the blue Property Transfer form and give you a copy. This copy needs to be given to the System Offices Property Manager as soon as possible.
If your department has other equipment to send to Surplus, please put it on a separate blue Property Transfer form, not on the one with the cannibalized equipment. Remember to follow System Offices Trading Post procedures prior to submitting the form for equipment that has not been cannibalized.
What is the System Offices Trading Post?
The System Offices Trading Post is provided to maximize the use of System Offices resources. Before any usable item is sent to A&M Surplus, all System Offices departments are given the opportunity to "adopt" the item.
If your department is planning to Surplus usable items (both inventoried and non-inventoried), send an email to the System Offices Property Manager. Your email needs to include a list and brief description of the items, the name and phone number of your department contact (i.e. who other departments should contact in your department to receive more information about the items). The email you send to the System Offices Property Manager will be forwarded to all System Offices APOs and Alternate APOs via the System Offices Trading Post list. Please allow other departments a few days to consider "adopting" the equipment after the System Offices Trading Post email is sent before you prepare a Property Transfer form. After that time, your department may submit the paperwork to transfer the equipment to Surplus.
Many items that otherwise would have gone to A&M Surplus have simply been transferred to another department for their use. This saves both time and money.
If a piece of equipment does not work, do I still have to advertise it on the System Offices Trading Post?
It depends. You will need to use your best judgement and common sense to make this decision. Example: your department has a printer that no longer works, you have researched the cost of fixing it but it is cheaper to just buy a new one. In this case, there is no benefit to advertising the item. Now assume you do not know what is wrong with the printer and do not have time to look into it – then advertise that you have a printer that needs repair. Generally, if something seems broken beyond repair, don’t advertise it but when in doubt let another department decide if they want the item transferred to them.
Do I have to cannibalize an inventoried item that does not work before sending it to Surplus?
No. Broken inventoried items can still be taken to Surplus as inventoried items. You only complete paperwork to cannibalize equipment that meets the definition of cannibalization. An item that is simply broken does not meet the definition.
For more FAQs see the Property Transfer Form - after the instruction section for completing the form.
What is the purpose of each System Offices form? -
A complete description and steps on how to complete each form can be found by clicking on the individual form. Below, in brief, is the purpose of each form.
Equipment Information Sheet
In order for a voucher with inventoried equipment to be paid (i.e. a voucher with an object code between 5775-5799 or 8400-8479), the voucher must be accompanied by an Equipment Information Sheet unless the department is using on-line purchasing and fills in screen FRS 362 in FAMIS. The voucher will be returned to your department if an equipment information sheet is not attached and completed correctly. It is very important that the equipment information sheet be accurately completed. The information from this form is put into FAMIS and is the only on-line record we have of your equipment's asset number, model number, serial number, etc. Complete and accurate information will help you during the annual inventory process, which normally takes place in June or July.
Property Additions and Deletions
Property acquired through a donation (gift) that meets the definition of a controlled/capital asset, needs to be inventoried and tagged. A Property Additions and Deletions form as well as an Equipment Information Sheet must be completed.
If your department needs to delete an item from inventory due to sale, trade-in or cannibalization, a Property Additions and Deletions form needs to be completed.
Property Transfer
If your department wishes to transfer inventoried equipment to another System Offices department, A&M Surplus, or another A&M System Member, a Property Transfer form must be completed. If the transfer includes a computer, a Transfer of Computer Equipment form must also be completed. If your department wants to transfer non-inventoried (N/I) equipment to Surplus or another A&M System Member, the Property Transfer form must still be completed. It does not need to be done for N/I equipment transfers between System Offices departments.
Missing or Stolen Property Report
Whenever inventoried equipment is stolen or discovered missing, a Missing or Stolen Property Report must be completed. This official notification should take place within 24 hours of identifying missing equipment. For stolen equipment the police department needs to be notified within 48 hours. Missing equipment will remain on FAMIS as an active asset for two years after the missing report is filed with the State (the System Offices Property Manager will handle the State requirements).
Cancellation of Missing or Stolen Property Report
The purpose of this form is to cancel a previously submitted Missing or Stolen Property Report. If a previously reported missing or stolen asset is located, please fill this report out and submit it to the System Offices Property Manager.
Certification of Physical Inventory
State law requires a physical inventory of System Offices owned property every year. In addition to fulfilling the law, this gives each department an opportunity to update condition codes, verify serial numbers, and to make building/room changes that have occurred during the year. Of course, it is strongly encouraged that you make building/room changes immediately after they occur. Changes can be entered into FFX screen 535 in FAMIS if you have this access. It is the responsibility of the APO or Alternate APO to sign that its department has completed the physical inventory. At annual inventory time, usually June or July, you will be asked to complete a Certification of Physical Inventory.
Transfers of Equipment to Out-of-Office Locations
This form must be completed whenever an employee is allowed to take System Offices inventoried property out of the office. For example, this form would need to be completed if an employee is permitted to take a System Offices computer home in order to work in the evenings. This form protects System Offices against negligent loss of, or damage to, equipment. Also, the form helps keep track of equipment.
After reviewing these forms and their instruction sheets, if you still have questions about your department's equipment, please contact the System Offices Property Manager in the System Offices Business Office.