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Financial Services Procedures
Establish instructions and guidelines to use in exercising proper control, custodial care, maintenance, security, and disposition over Non-Capital Assets (NCAs).
Operational Units (schools, divisions, departments) and individuals responsible for the acquisition, distribution, storage, disposal, and management of NCAs owned and used by UMB, if purchased using UMB Funds, purchased with an Affiliate organization’s funds, or donated to UMB.
** UPDATED MAY 21, 2018 to Add Asset Disposal System **
Operational Unit managers and other personnel with fiscal responsibility must exercise good judgment and demonstrate governance of all activities related to NCAs through the use of budgetary planning, recordkeeping, analysis, and other appropriate measures satisfying this procedure or exceeding the procedure’s requirements as an Operational Unit may require to safeguard its NCAs.
Internal controls must be sufficient to minimize losses of NCAs. This procedure addresses minimum internal controls required for all UMB Operational Units. Individual schools/departments may determine that stricter controls are needed to achieve objectives. Similarly, Financial Services or Management Advisory Services may impose stricter controls on individual schools/departments as needed to ensure compliance with State, USM, and UMB policies.
At a minimum, all UMB Operational Units are required to do the following:
- Properly segregate duties in the following processes:
- Custody of assets
- Adhere to established budgetary guidelines for all NCA purchases.
- Properly follow UMB procurement policies, including the use of the Corporate Purchasing Card (P-card). NCA purchases should be reasonable and necessary to meet the objectives of the Operational Unit
- Identify an NCA Custodian having responsibilities including oversight of NCA processes, such as tagging NCAs, placing NCAs into service, disposing of NCAs, and recordkeeping related to NCAs.
- Tag each NCA with a UMB asset tag.
- Record NCA purchases via requisitions to General Ledger (GL) Account 3953–Non-Capital Assets.
- Reallocate P-card purchases to NCA GL account 3953-Non-Capital Assets within 30 days of the date the P-card is charged.
- Ensure every NCA purchase is substantiated by its purpose.
- Properly document disposal of NCAs.
- The EEAF System is an online software application designed to assist Operational Units in managing assets, including DNCAs. The EEAF System is used by Operational Unit NCA Custodians and UMB employees and Affiliates.
- Operational Unit NCA Custodians
- Record NCA information, employee and UMB Affiliate assignments of NCAs, and NCA dispositions. See Procedures Section-Recordkeeping.
- Assign DNCAs to employees and UMB Affiliates.
- Run status reports.
- Access to EEAF system is granted by Financial Services-General Accounting.
- Accept terms and conditions for assigned DNCAs through use of the EEAF.
- View assigned and returned DNCAs.
- Access to EEAF is available via MyUMB.
- Operational Unit NCA Custodians
Operational Unit records concerning an NCA are subject to audit for a period of five years from the date of its purchase. Upon request, the Operational Unit must be able to produce NCA purchase records, EEAFs (designated NCAs only), and produce disposal records (if applicable) of the NCA.
An Operational Unit may transfer an NCA to another Operational Unit with the written approval of both Operational Units. Upon transfer of an NCA, recordkeeping and appropriate disposal are the responsibility of the receiving Operational Unit.
UMB may visually inspect NCAs at any time.
- Record to GL account 3953 - Non-Capital Assets.
- Apply a UMB asset tag to the NCA.
- Employ Operational Unit procedures to satisfy audit criteria stated in the General Guidelines. For example, Operational Units may document serial numbers, asset tag numbers, location, recipient, or other information on purchase records to identify the NCAs purchased.
Designated Non-Capital Assets (DNCAs)
- The following NCAs are classified as DNCAs:
- Audio/visual equipment
- NCAs located in a residence
- OPTIONAL- Individual schools or departments may choose to classify additional items as DNCAs. Examples include:
- Mobile phones
- Desktop computers
- Equipment with an Acquisition Cost less than $1,000 located in a residence
- All DNCAs must be entered into the EEAF System within 30 days of purchase.
- Assigned DNCAs require a fully executed EEAF within 30 days of assignment.
- All property must be disposed of in accordance with UMB Policy VIII-1.20(A) Disposal of Surplus Personal Property.
- The disposal of computer equipment must also comply with UMB Policy X-99.08(A) on Disposal of Media Containing Data.
- NCAs that contain data must be disposed via the Asset Disposal System.
- NCAs that do not contain data muste be disposed via the Excess Property Declaration/Capital Asset Deletion Form. Send the completed form to FS-GA, The Saratoga Building, Room 02-125.
- DNCAs must be marked as disposed in the EEAF System.
Each Operational Unit is required to maintain records related to all its NCAs. At a minimum these records should include the following:
- P-card records (approved and signed transaction logs and reconciliations, receipts, audit reviews, cardholder statements, and any additional supporting documentation).
- Asset records for DNCAs entered into the EEAF system. The following data is maintained in the EEAF system:
- Asset type and description
- Serial number
- Responsible Employee or UMB Affiliate
- Date assigned
- EEAF completed with
- Employee/Affiliate name and ID
- Department name
- NCA description, date issued
- NCA serial number
- Terms and conditions
- NCA Custodian
- Disposal/Transfer Date
Violation of Policy or Procedure
Any employee of UMB who intentionally violates UMB policies or procedures is subject to disciplinary action by UMB up to and including termination of employment. An employee who discovers that an NCA assigned to him is missing or damaged must immediately notify the employee’s asset custodian and supervisor. A UMB Affiliate who violates the UMB policy or procedure concerning NCAs will be reported to the Affiliate’s employer, denied Affiliate privileges, and be required to return NCAs owned by UMB.
UMB employees and Affiliates who misuse or misappropriate NCAs in violation of law may be referred for criminal investigation possibly resulting in prosecution.
- Exceptions to this proceduremust be approved in writing by the University Controller (UC) in FS.
- Procedure exception requests must be submitted to the UC using the Policy or Procedure Exception Request Form available on the FS website.
- Procedure exception requests must be signed/e-mailed by the Department Head or designee.
- Exceptions to the related policy, UMB Policy VIII-1.10(A) Non-Capital Assets, must be approved in writing by the CBFO.
- Policy exception requests must be submitted to the UC using the Policy or Procedure Exception Request Form.
- Policy exception requests must be signed by the appropriate Dean/Vice President or Associate Dean/AVP.
Questions? Contact the General Accounting Manager, Financial Services at 410-706-6025.
- Accept the terms and conditions on the EEAF for any DNCA assigned to the employee/Affiliate.
- Exercise diligence in the proper care, use, and control of NCAs and the data they may contain.
- Immediately report lost, stolen, or damaged NCAs to the supervisor of the employee or, for an Affiliates, the appropriate UMB fiscal administrator.
- Return NCAs to the issuing Operational Unit when no longer used for UMB purposes.
- Maintain appropriate segregation of duties and internal control procedures.
- Ensure that NCAs are tagged with a UMB asset tag.
- Ensure that EEAFs are completed for DNCAs.
- Ensure that NCAs are properly disposed in accordance with CITS policies and procedures.
- Retain all appropriate documentation and records in the Operational Unit.
Department of Financial Services-General Accounting
- Provide Operational Units with UMB asset tags.
- Review activity in GL account 3953 - Non-Capital Assets and in EEAFs.
- Manage access to the EEAF System.
Department of Management Advisory Services
- Incorporate into existing periodic reviews of P-card records, a review for EEAFs and to ensure proper posting to the appropriate General Ledger Account.
- Notify the Operational Unit selected, Financial Services, and Sponsored Projects Accounting and Compliance (for grant-funded assets) if the results of the periodic reviews are unfavorable. The applicable Dean or Vice President may also be notified.
Definitions and Terms
Acquisition Cost - Cost or value of an NCA which is recorded in UMB financial records. Acquisition Cost includes the asset cost, tax, shipping, setup costs, and discounts. Acquisition Cost does not include additional items listed separately on the invoice, unless the additional items are required components to complete the NCA. For example, application software (e.g. Microsoft Office, Adobe, etc.) listed separately on an invoice for a laptop is not included in the laptop Acquisition Cost. However, operating system software (e.g. Windows, Linux, etc.), memory, or other additions listed on the invoice that are integral to the laptop are included in the Acquisition Cost.
Authorized Affiliate Employee - Person employed by an entity that has a relationship with UMB authorized by the Board of Regents or by law, e.g., faculty practice plan organizations, University of Maryland Baltimore Foundation (UMBF) and other affiliated foundations, recognized incorporated alumni associations, recognized affiliated business entities, University of Maryland Medical System/University of Maryland Medical Center, and other University System of Maryland institutions. An Authorized Affiliate Employee is responsible for the administration and reporting of UMB resources.
Corporate Purchasing Card (P-card) - Purchasing Card used for small purchases of business-related products and services. The P-card is generally accepted at locations where VISA is accepted. Regulations governing the use of the P-card are available through the UMB Department of Procurement Services.
Custodial Care - Procedures taken to reduce the risk of loss or misappropriation. Custodial care involves physical, analytical, and managerial tasks. Examples include tagging equipment, securing assets in a locked room or cabinet when not in service, reviewing purchases and financial data, and segregating duties.
Designated Non-Capital Asset (DNCA) - DNCAs are a subset of NCAs that require additional stewardship such as documentation showing assignment to UMB employees or Affiliates. Generally, DNCAs are desirable, easily converted to personal use, and susceptible to theft. Typically, these assets are not fixed to a permanent structure and can be easily removed or carried. Examples include laptops, tablets, audio/visual equipment, and NCAs located in a residence.
Employee Equipment Acknowledgment Form (EEAF) - Agreement between UMB and an employee/affiliate that describes the employee/affiliate’s responsibilities and UMB’s rights to recover NCAs described on the form. The terms and conditions address lost, stolen, or damaged NCAs. EEAFs are generated and stored in the EEAF system.
UMB Funds - All funds administered by UMB, regardless of fund source. UMB Funds include State appropriated general funds, tuition, fees, and other income, as well as auxiliary funds, revolving/discretionary funds, Designated Research Initiative Funds, gifts, contract or grant revenues, and other restricted funds.
Forms can be obtained from the Financial Services website:
- Excess Property Declaration/Capital Asset Deletion - Record NCA disposals in accordance with UMB Policy VIII – 1.20(A) Disposal of Surplus Personal Property.
- Policy or Procedure Exception Request - Request an exception for circumstances that are in the best interest of the school or department but do not fall within the guidelines prescribed by the policy or procedure.
Purchasing card (P-card)
- UMB Systems Tutorials Browser Link
- In the MyUMB portal Enterprise Menu: UMB System Tutorials> Pro Card Reallocation
- Corporate Purchasing Card Instructions
- UMB Systems Tutorials Browser Link
- In the MyUMB portal Enterprise Menu: UMB System Tutorials> Managing Requisitions
- UMB Campus & Contractor Purchasing Guide