COVID-19 Updates

BSU is open. An initial plan to return to campus in the fall 2020 semester is now available.

VIII - 1.10 - Policy and Procedures for the Control of Capital Equipment


The University of Maryland System Policy for Capitalization and Inventory Control states, "Each institution is responsible for maintaining inventory records for all movable equipment, performing or coordinating physical inventories, reconciling physical inventories to the related records at least once every two years, and reconciling equipment additions and deductions of the inventory system to the general accounting system." Bowie State University is committed to the responsibility of safeguarding, maintaining and accounting for its equipment. This document sets forth the procedures for establishing accountability, and responsibilities for maintaining records and taking physical inventory of equipment.

II. Applicability


This policy is applicable to all academic and administrative units of the University in which equipment is housed.


1.Each unit head is responsible to the University for the care, control, maintenance, and safeguard of all property entrusted to his/her care regardless of its value and is designated as the Property Accountable Officer (PAO).

2.The head of each unit of the University is responsible for either performing or delegating the duties of the PAO. Such delegation must be done in writing to the Property Control Unit of Material Management each time there is a change in the delegation.

3.It is the responsibility of the Property Accountable Officer (PAO) to

a)assume custody of all equipment within the unit;

b)conduct physical inventory of all equipment at least every two years;

c)notify Property Control of the results of the biennial inventory of equipment;

d)sign all requisitions and receipts for personal property;

e)ensure that equipment is properly marked and identified;

f)instruct employees in the use and care of University property in their custody or under their control and to report losses immediately;

g)require personnel to sign a receipt for property assigned to them for the conduct of official business outside of the University;

h)be able to locate all equipment within the unit when required to do so; and,

i)be available to assist Property Control personnel during random audits of equipment inventory records.

4.It is the responsibility of Property Control to

a)tag and record into the Property Control Report all equipment costing more than $500;

b)notify unit PAO when physical inventories are required;

c)coordinate the physical inventory with the PAO;

d)reconcile the physical inventory records with the University's detail record of property;

e)delete lost, stolen, irreparable, or obsolete equipment from the University's detail record of property when appropriately notified by the PAO;

f)reconcile the equipment detail records with accounting records;

g)report additions and deletions of capital equipment and the total value of all capital equipment to the Controller's Office each fiscal year end; and

h)perform random audits of unit's inventory records and physical inventory reports.

III. Guidelines and Standards

A.Maintaining equipment records for equipment with unit cost of $500 or more.

1.Inventory records for items with a unit cost of $500 or more are maintained centrally by Property Control.

2.Property Control tags and records all equipment purchased through the University's procurement process and received by Central Receiving. Units must ensure that each new item of equipment obtained with University funds, by donation or by transfer is properly identified, tagged and recorded. Units must notify Property Control of all equipment acquisitions that are received by the unit directly from a vendor, from a donor or other source outside the University procurement process or that have not been tagged by Property Control.

3.Units are responsible for obtaining required approvals for equipment additions, deletions and moves, maintaining documentation supporting all property transactions and providing copies of the documentation to Property Control as required for record maintenance. The required documentation is listed below.

a)New equipment - Purchase Order, donation/gift letter

b)Transferred equipment - approved Property Control Action Request (PCAR), transfer letter

c)Stolen equipment - BSU Police Report

d)Obsolete equipment - approved PCAR

e)Lost equipment - BSU Police Report

f)Relocated equipment (temporary or permanent) - approved PCAR

B.Establishing and maintaining records of sensitive equipment with a unit cost less than $500.

1.Units are required to establish and maintain detailed records of all sensitive equipment with a unit cost of less than $500.

2.This record may be maintained manually or on computer.

3.To establish the record, the unit must

a)Identify all sensitive equipment controlled by the unit that has a unit cost of less than $500.

b)Record for each piece of sensitive equipment description

(1) tag number, if one exists

(2) serial number

(3) cost (estimate if actual is not available)

(4) year of acquisition (estimate if actual is not available)

(5) location i.e., building and room #

(6) employee responsible for the item

4.To maintain the record, the unit must

a)Add purchases of sensitive equipment with unit cost of less than $500 to the record immediately upon receipt.

b)Remove equipment from the record immediately upon receipt of proper approval and documentation that the property has been lost, stolen, transferred or disposed of in accordance with BSU-VIII-1.20-Policy on Disposal of Surplus Property. Maintain the documentation supporting the removal.

C.Procedures for conducting physical inventory, including sensitive equipment with cost of less than $500.

1.Visit each room/area assigned to the unit to physically inspect equipment.

a)Identify equipment

b)Evaluate condition of item to determine if it is functional or should be considered for disposal

c)Locate serial number, brand name, University property tags and other identification markings on the item.

2.List all equipment with a cost of more than $500 and sensitive equipment with a unit cost of less than $500. (Exhibit 1) The list should include:

a)BSU inventory tag number

b)Brief item description

c)Serial number

d)Cost (estimated if actual cost is not available)

e)Location (building and room number)

f)Employee to whom it is assigned

3.Compare listing to University equipment record provided by Property Control and your unit record of sensitive equipment costing less than $500, and investigate any of the following:

a)Equipment listed on the printout provided by Property Control or your unit record that was not identified during the physical count. Attempt to locate the item. Investigate to determine if it is out for repairs, was disposed of, was used as a trade-in, etc. If unable to locate or determine what was done with the item, file a police report. Correct the printout or unit inventory record to reflect the current location of the item or its loss or disposal. Maintain record of the investigation process and attach copies of documentation to printout.

b)Equipment identified during physical inventory count that is not on the inventory records. Determine when the equipment was purchased, transferred to the unit, donated, etc. Add the item to the computer printout and attach supporting documentation such as P.O., gift letter, PCAR, etc. to the appropriate inventory record.

c)Equipment identified during physical count that is on the printout, but not functional. Submit a written request to Property Control for removal and disposal of equipment. Equipment will be disposed of in accordance with BSU Policy VIII - 1.20 - Disposal of Surplus Personal Property.

d)Send the Notice of Inventory Completion (Exhibit 2), the original printout with adjustments, a copy of the unit's final record of sensitive equipment costing less than $500 and supporting documentation to Property Control.

e)Maintain the physical inventory count sheets and documentation of problem resolution for audit verification.


All equipment of Bowie State University will be tagged, recorded, accounted for, and easily located at all times.


A.Equipment - "all equipment that is not permanently affixed to buildings, has a useful life greater than one year, except for items predominantly composed of glass, rubber, cloth and equipment held for resale" that is owned by or assigned for custody to the University, including computer software. This includes equipment that is purchased, acquired by capital lease, as defined below, or donated to the University.

B.Capital equipment - equipment, as defined above, having a unit cost of $5000 or more

C.Non-capital equipment - equipment, as defined in A, above, having a unit cost of less than $5,000.

D.Capital lease - a lease that at inception meets any one of the following criteria:

1.Transfers ownership of the property to the lessee by the end of the lease term;

2.Contains a bargain purchase option;

3.Contains a lease term that is 75 percent or more of the estimated economic life of the leased property; or

4.At the beginning of the lease term a present value of the minimum lease payments equals or exceeds 90 percent of the excess of the fair value of the leased property.

E.Sensitive equipment- equipment as defined in A, above, regardless of cost, that is prone to theft and/or is easily convertible to personal use. This includes, but is not limited to, computer software, firearms, electronic equipment and calculators. This category of equipment does not include desks, chairs, bookcases, and other pieces of furniture under $500.

F.Unit - A sub-division of Bowie State University, i.e., division, department or any part thereof.

Effective Date: 03/07/1995