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DPA MEETING NOTES
January 2006

TOPICS

FY05 AUDIT RECAP
FEBRUARY 2006 MEETING
DPA MEETING SCHEDULE
FIELD INVENTORY LISTS
2006 INVENTORY CYCLE
DISPOSAL REQUEST-VERIFICATION/DESCRIPTION
DISMANTLES – WHAT’S THE DEFINITION?
RMA’S – FADB DOCUMENTATION
SENSITIVE PROPERTY THRESHOLDS

FY05 AUDIT RECAP – Good News! The auditors did not find any problems with the management of UCAR Property, either within the divisions or Budget and Finance!  We can all be proud that our hard work has paid off, once again!  This was KPMG’s second year auditing UCAR.  The first year was somewhat of a training year for them, so they came back in FY05 with many more questions and requests for ways to report.

FEBRUARY 2006 MEETING – The February 2006 meeting is currently scheduled for Thursday, the 23rd, 9:30-11:00 A.M., at FL3 Room 2072.  Chris has sent MM proposals for the 2006 DPA Meetings through March and the schedule is posted on the Property Web page.

DPA MEETING SCHEDULE – There has been a sharp decline in participation for the DPA meetings in the past year.  Chris, Melissa and I would like to hear your views on why.  What would make the meetings more interesting?  Would they be more productive if we had them quarterly or perhaps 6 times a year?  Would food help?  A couple of options for meeting might include the following schedules, but your suggestions are encouraged:

January, September and October are critical months.
January is important as it allows us to recap how the audit went and discuss any changes that might need to be made for the coming year.  September and October are important; because we need to prepare for the upcoming audit and communicate updates with regard to timing, audit selections, etc.

FIELD INVENTORY LISTS – During a recent inventory, it was discovered that several assets were being prepared for shipment to a field project.  This created some problems with accomplishing the inventory, as the users had not completed their field inventory list.  It is important that divisions create a list of equipment taken from UCAR Boulder sites for field efforts both as documentation in case of an insurance claim and to demonstrate prudent business practice to sponsors and auditors. Below are some ideas to use in preparation for field project inventory.  If you have additional ideas, please contact Dee or Chris.

  Field Inventory List – This form identifies the information that should be documented when equipment is taken to the field.  During the meeting we brainstormed on ways to make the form more user friendly.  Chris will send an e-mail when the form has been revised.

  Property Checklists – DPA's can download their FADB records to an Excel spreadsheet, copy and paste appropriate items from their Sensitive Property list, and create a checklist. Then, division staff can check off items being taken on the field effort. The list could include all division equipment or just equipment for a specific Responsible Person. The checklist should include several blank lines so staff can add equipment items that did not appear in the checklist.

2006 INVENTORY CYCLE – The 2006 inventory cycle is currently underway. This is a summary of the inventory process. Issues relevant to each division will be discussed in detail prior to the inventory start date. If you have questions about your division's inventory, feel free to contact the Property Office at any time.

• UCAR is required to complete a 100% inventory at least every two years per OMB Circular A-110. For each division, a 100% inventory must
  
  • Be completed not more than two years after the previous inventory, and
    
  • Physically access and verify 100% of the assets for which that division is accountable.
    
    
• Scheduling – The inventory “complete by” date (Inventory Schedule on the Property Web site) is the date by which the division's inventory must be finalized. Divisions will have up to three months to complete their inventory depending on the quantity and mobility of their assets, and how long past inventories have required. Divisions may conduct their inventory anytime prior to the “complete by” date and within the two-year timeframe.

• DPA Preparation – Prior to the inventory start date, DPA's should begin preparation.
  
  • Notify division staff that the inventory will begin on the date specified.
  • Make necessary updates to the FADB, such as Responsible Person, location, etc. The Property Office will print the Master List the day before the inventory starts. Have corrections input by then.
         **If you know ahead of time when a project is going out that has a lot of equipment going with it, please notify the Property Office so we can arrange to scan these items before the project gets loaded for shipment.** 
  • Arrange for access to all assets. This may mean having someone available to gain access to a computer lab for scanning assets in that room. Arranging this in advance greatly expedites the inventory process.
  • Make appointments with Responsible Persons if access to their assets requires their presence.
  • Contact the Property Assistant for instructions on how to inventory assets that are not at Boulder locations.
    
  • Pre-Inventory Checklist – Prior to their FY06 inventory, RAL requested a Pre-Inventory Checklist that proved to be a BIG time saver.  Chris reviewed a rough draft of the checklist during the meeting, and requests feedback from anyone who would like to utilize this technique prior to their inventory start time.  A Responsible Person Update can also be done prior to your scheduled time if this is the method you prefer.  Please contact Chris for additional information.
    
    
• Materials – The Property Office will provide:
  • The scanner
  • The Master List sorted by FAID unless other sort criteria are requested. Some divisions find that sorting the list by Responsible Person helps to get one person's assets done all at once. Others prefer to have it sorted by location, so they can scan all the assets one room at a time. Let the Property Office know the day before the Master list is produced if you have a preference.
  • A list of disposed assets. This is used for reference, in case property tags are encountered that are not on the active list.
    
    
• Process – The DPA and Property Assistant will work as a team to perform the inventory and ensure compliance with inventory-related regulations.
  • Scan bar-coded assets. Verify serial number, model number, manufacturer, location, and utilization. Assets no longer in use must be processed as disposals and removed from the active asset list.
  • Manually inventory assets that cannot be scanned, verifying same information as above. This can occur when the bar-coded tag is not accessible to the scanner or the asset has no tag. PPE8 and PPE9 prefixes indicate no tag on asset. Write the inventory date and initials of individual who performed the inventory on the Master List as each item is inventoried.
  • After all is finished and I have reconciled the Master List, I will send the DPA the finished copy with all changes so you have a complete list for your records. 
  • Inventory assets at non-Boulder locations as discussed with Property Assistant (see DPA Preparation above). Follow-up weekly until closure is achieved.

DISPOSAL REQUEST- VERIFICATION/DESCRIPTION – Before e-mailing to request disposal authorization, be sure to verify that the physical asset matches the FADB record by PPE#, serial no., mfr, and model. If there is any discrepancy between the physical asset and the FAID record that should reflect it, contact the Property Office and sort out the difference before proceeding.  This is a very important step, since this information is part of our procedures, the auditors will verify the information is present on all disposals.  An excellent example of a disposal request follows:

XXX Division has the following items to excess:
PPEXXXXX
Description: Dell Precision 670N
Serial Number: ABCD1234
Manufacturer: Dell
Reason for disposition:.....Salvage, obsolete technology, dismantled and used for parts....

DISMANTLES – WHAT IS THE DEFINITION? – Following is the definition as defined in the Property Manual.

DISMANTLE/SCRAP -
Also referred to as "cannibalizing," this means that the asset is dismantled for parts to be used on other assets and any remaining pieces are sent to a scrap dealer. If the Division plans to dismantle an asset notify the Property Office by e-mail:

Stating "[division] wants to dismantle the following asset and use the parts to maintain other equipment."

Providing a list of the assets to be dismantled including PPE#, description, and serial number.

The Property Office will notify and, when appropriate, obtain approval from the government property administrator or other agreement contact. Then a disposal record will be created in the FADB to remove the asset from the division's list of active assets.

NOTE: This notification must occur prior to the dismantle.

There have been recent questions regarding the definition of a dismantle.  It is important that we be consistent with the understanding. 

• The meeting included some discussion surrounding what constitutes a dismantle.  Basically, it was determined that if an asset (the part of it for which the primary tag is affixed) is no longer functioning or is obsolete to the user's needs, then it would be considered a dismantle.  If you have a system, for example, a cpu/laptop, with an additional monitor and keyboard and the cpu/laptop still works and will remain in use, but the monitor and/or keyboard no longer functions and will be removed or replaced with another, that primary asset is still functioning and will not be considered a dismantle.  Generally, the part of an asset with the serial #/model # is that which is tracked in the Fixed Asset Database.  So that is the part that will be inventoried.  This doesn't give permission to take apart assets that were originally purchased to create a system, as this would circumvent our procedures.  It is intended to provide flexibility in being able to continue using an asset for its original intent.

RMA’S – FADB DOCUMENTATION – Return Materials Authorizations (RMA's) are often required by the vendor when equipment is shipped back to them for repair or maintenance.  We will be adding two fields in the FAIDNT screens of the Fixed Asset Database for DPA’s to identify when assets have been sent out to vendors.  The two fields will be labeled RMA# and Sch. Ret. Date.  This action will not be added to the DPA Duties and Responsibilities; it is for the convenience of the DPA’s for tracking equipment repair and maintenance shipments.

SENSITIVE PROPERTY THRESHOLDS – The Property Office is reviewing the thresholds on sensitive property. The guideline currently reads, “Items (individual or system) which have an acquisition cost between $2,000 and $5,000…” When the guidelines were originally written laptops, PDA's, printers and other small portable equipment were generally more expensive than they are today.  We would like to change the threshold on sensitive property to read, “acquisition cost less than $5,000.”  Comments?

Contact the Property Office at any time with questions or for assistance.
We're here to help you manage your division's property.
Dee Huddle, ext 8858, huddle@ucar.edu; Chris Knoetgen, ext 8573, knoetgen@ucar.edu

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