The institution exercises appropriate control over all its physical resources.
 

Compliance Judgment:  In compliance 

Narrative

East Carolina University (hereafter, ECU or the university or the institution) exercises appropriate control over its physical resources as evidenced by accurate and up-to-date records of fixed assets and surplus property, appropriate risk management practices and insurance coverage, ongoing and adequate maintenance of facilities and their components, and facilities planning. Each aspect of this work adheres to published standards and procedures.

Fixed Assets and Surplus Property

Fixed Assets, located in the Office of Materials Management, is responsible for ECU’s property inventory and surplus property program. The department maintains accurate and up-to-date records of the university’s physical property and tracks assets for the purposes of financial accounting, preventative maintenance, and internal controls. All equipment purchased with university funds is the property of ECU and the State of North Carolina (regardless of the funding source) until the appropriate approvals and disposition processes are followed.  ECU maintains detailed inventories of all fixed assets and associated depreciation as required by, and in accordance with, the State of North Carolina Accounting System Capital and Fixed Assets Rules and Regulations.

Fixed Assets conducts an Annual Departmental Fixed Assets Inventory Verification process of capitalized items and posts departmental lost and physical inventory verification reports online. These reports require review and update by ECU’s department heads who assume responsibility for assets within each of their respective departments. The department heads use the Departmental Internal Inventory Tracking Guidelines and Fixed Assets Inventory Verification Guidelines for Departments when completing annual reports. Reports are required on the current status and location of recorded property with a value of $5,000 or greater and controlled equipment (electronic equipment and laboratory equipment) valued from $1,200 to $4,999. Departmental property liaisons (designated by the department heads) attend inventory policy and procedures workshops annually. Fixed Assets performs spot inspections of departmental equipment annually. An example of the spot check conducted for 2010 can be found in the May 26, 2010 Inventory Listing for Main Campus report. Inspection reports are forwarded to the Office of Internal Audit and Management Advisory Services. 

In 2008, the UNC Financial Improvement Transformation (UNC FIT) project was established that includes baseline standards in key areas for tracking capital assets. UNC FIT Capital Assets Standards have been implemented by all of the constituent institutions of the University of North Carolina (hereafter, UNC) to enhance the capital assets process. 

Fixed Assets and Surplus Property are responsible for the disposal or transfer of all surplus equipment in accordance with policies and procedures established by the North Carolina Department of Administration State Surplus Property Agency. The movement of equipment within departments as well as from one department to another is managed using the Equipment / Furniture Relocation Request Form.  Fixed Assets uses the Fixed Asset Transfer Form to track the transfer of ownership or responsibility of equipment from one department to another. 

Departments with excess equipment must surplus those items using the ECU Property Equipment Tracking System (PETS). Equipment (not moved within the university or transferred to another government agency) is handled by State of North Carolina Surplus Property Agency via a bid process. Item(s) not sold via the bid process may be sold in the East Carolina University Surplus Retail Store or are disposed of in accordance with the Department of Administration Internal Operating Procedures for Fixed Asset Control – Disposal of Assets by State Surplus

Equipment is considered lost when it is listed on the previous year’s physical inventory verification report and cannot be located. Lost equipment is recorded and subject to audit. If equipment is stolen, the proper authorities are notified and a police/security report filed and the University Attorney’s Office  and Office of Internal Audit and Management Advisory Services notified. 

Risk Management and Insurance

Risk Management is tasked with maintaining insurance coverage on university-owned property. ECU handles risk in a variety of ways including participation in the State-administered insurance programs, through the purchase of commercial insurance, and self-retention of certain risks. ECU participates in the NC Department of Insurance (NCDOI) program. This program provides insurance for a variety of insurance policies (property, auto, equipment, crime, student health, etc.). 

The State Property Fire Insurance Fund, an internal insurance fund for the state, insures all state-owned buildings and contents for fire, lightning, extended coverage, and other property losses at no cost to ECU. Through this fund, the university also purchases extended coverage insurance and other types of property coverage through including, but not limited to, coverage for sprinkler leakage, business interruption, vandalism, theft, and "all risks" for buildings and contents.  Those operations not supported by the State's General Fund are subject to a $5,000 per occurrence deductible.

All State owned vehicles are covered by liability insurance through a private insurance company and handled by the North Carolina Department of Insurance.  The liability limits for losses are $1,000,000 per claim and $10,000,000 per occurrence.  The university purchases other authorized coverage from private insurance companies through the North Carolina Department of Insurance. Examples include, but are not limited to on-loan collections of art, leased equipment, modular units, boiler machinery, musical equipment, and boats.

Maintenance of Facilities

ECU tracks and reports deferred maintenance through the North Carolina State Construction Office Facility Condition Assessment Program (FCAP), which defines deficiencies and recommends required steps to restore a facility to its original condition when built. The most recent FCAP study was performed in 2007 and identified over $474,000,000 deficiencies (FCAP 2007 - All Deficiencies by Building Report Summary). FCAP deficiencies are used to determine the allocation of the Repair and Renovation funding received from the state and to determine if a facility should be placed higher on the list of proposed projects for renovation or demolished. As outlined in the 2011-17 Repair and Renovations Plan, the university plans strategically to exercise appropriate maintenance of its facilities.  

Routine work orders and preventative maintenance is accomplished through a prescriptive use of Facilities Services’ Computerized Maintenance Management System. Facilities Services has established a preventative maintenance work order process to keep equipment in good working order and to fulfill codes required for life safety inspections and testing.  Routine work orders are received from campus departments via a call center and\or the web-based system request.  Over the past four fiscal years, the percentage of asset preventive work orders to corrective work order has steadily increased, proving the Facilities Services’ preventive maintenance system is improving the quality of the system components.  

Policies and Procedures

ECU adheres to a set of policies related to property procurement, control, and inventory and policies for the maintenance, design, and approval buildings that are posted online. Select examples of some of these policies are listed below:


Through these policies, procedures, and practices, East Carolina University exercises appropriate control over all its physical resources. 


Documentation

Reference Title

Location

2011-17 Repair and Renovations Plan 

2011-17 ECU Repairs and Renovations Project Plan

Annual Departmental Fixed Assets Inventory Verification

EOY Inventory Memorandum 2010

Business Manual

ECU Business Manual

Departmental Internal Inventory Tracking Guidelines

Dept. Internal inventory Tracking Guidelines

ECU Property Equipment Tracking System (PETS)

ECU PETS

Equipment/Furniture Relocation Request Form

Equipment Furniture Relocation Request Form

Facilities Services Computerized Maintenance Management System

3.11.1 Facilities Computerized Maintenance Management System

 

Facilities Services Standard Practice Manual

Facilities Services Standard Practice Manual

FCAP 2007 - All Deficiencies by Building Report Summary

rptAllDeficienciesByBuilding

Fixed Asset Control – Disposal of Assets by State Surplus

NC_DOA_Property to State Surplus

Fixed Assets

Fixed Assets

Fixed Assets Inventory Verification Guidelines for Departments

Inventory_Verification_Guidelines_for_Departments

Fixed Asset Transfer Form

Fixed Asset Transfer Form

May 26, 2010 Inventory Listing for Main Campus

Inventory_Verification_Guidelines_for_Departments

North Carolina Department of Insurance

NCDOI

North Carolina Department of Administration State Surplus Property Agency

NC State Surplus Property Agency

 

Office of Internal Audit and Management Advisory Services

Office of Internal Audit and Management Advisory Services

Office of Materials Management

Office of Materials MGMT Inventory

Policy Statement 62: Fixed Assets Capital Equipment Inventory

Policy Statement 62

Policy Statement 63: Transfer of Equipment From Campus

Policy Statement 63

Policy Statement 64: Removal of University Equipment From Campus

Policy Statement 64

Procedures (surplus property)

Procedures for Surplus and Disposal

Repair and Renovation Funding

2011-17 ECU Repairs and Renovations Project Plan

Risk Management

Risk Management

State of North Carolina Accounting System Capital and Fixed Assets rules and regulations

NC Accounting System Cap Fixed Asset Rules

State Property Fire Insurance Fund

State Property Fire Insurance Fund

Surplus Property

Surplus Property

UNC Financial Improvement Transformation (UNC FIT)

UNC FIT

UNC FIT Capital Assets Standards

UNC FIT Capital Assets Standards

University Attorney’s Office

Office of the University Attorney