INVENTORY THRESHOLD
Board of Regents Policy Statement:
 11.1 State Requirements For Equipment Inventory
 The University System of Georgia is required to keep an equipment inventory of all
items that are nonconsumable and nonexpendable in nature, having a life expectancy of
three or more years, and an item acquisition cost of $3,000 or more. Examples of these
items are:




Motor Vehicles
Mechanized and Non-Mechanized Equipment
Office Equipment
Appliances
 Institutions may also include any item or items not meeting these criteria that it desires
to have included in the inventory for valid management reasons.
INVENTORY THRESHOLD
Current UGA Policy:
 The following items are inventory controlled under the current UGA Policy between $500 $2999.99
 Computers and computer peripheral equipment;
 Electronic audio/visual equipment;
 Cameras, camcorders
 Additional items below the inventory threshold are added at the request of departments
 Examples of items with a cost between $500- $2999.99 which are not required to be recorded on
inventory under the current UGA Policy
 Furniture
 Lab equipment (centrifuges, microscopes, etc)
 IT Switches
THRESHOLD COMPARISON
$500 – Current Policy
Raise Threshold to $1000
Raise Threshold to $3000
Impact
52,751 items on inventory between $500‐$2999.99
Removal of 19,188 items from inventory
Removal of 52,751 items from inventory
Fiscal Year 2016 Acquisitions
5,680 items acquired in FY16 3,485 items acquired in FY16 2,164 items acquired in FY16 with a cost between $500 ‐
with a cost between $1000 ‐ with a cost of $3000 or $2999.99
$2999.99
greater
Current Year Acquisitions (FY 2,956 Items acquired with a 2017)
cost between $500 –
$2999.99 (between July 1 ‐
March 30)
1,790 items acquired with a cost between $1000 and
$2999 (between July 1 ‐
March 30)
1,334 items acquired with a cost of $3000 or greater (between July 1‐March 30)
THRESHOLD CHANGE – TYPES OF EQUIPMENT AFFECTED
Projectors/Audio
Visual Equip
9%
Misc/Other
6%
Equipment Categories
(cost between $500-$2999.99)
Monitors/TV
7%
Printer/Scanners
8%
Computers
70%
INVENTORY THRESHOLD COMPARISON – POSSIBLE BENEFITS
$500 – Current Policy
Raise Threshold to $1000
Raise Threshold to $3000
Impact
52,751 items on inventory between $500‐$2999.99
Removal of 19,188 items from inventory
Removal of 52,751 items from inventory
Administrative Burden (Annual Physical Inventory, tracking equipment) High – Time consuming physical
inventory conducted
*Reduces burden (for Property Control & Departments)
*Reduces burden (*removing
the inventory record does not relieve UGA from accountability for state owned equipment)
Does it meet BOR Requirement?
Yes, and more effort to track additional items ($500‐
$2999.99)
Yes, and less work than a $500 threshold, but more than required under BOR policy
Yes, UGA policy will align with BOR Requirement
PCard Options
Current policy does not allow inventoried items to be purchased (Exceptions are granted by Procurement on a case‐by‐case basis provided the unit cost plus freight is below $3000)
Since items below the $1000 threshold will not be inventoried, it may be possible to use a PCard for those purchases (if allowed by PCard
Policy and within STL) Since items below the $3000 threshold will not be inventoried, it may be possible to use a PCard for those purchases (if allowed by PCard
Policy and within STL) INVENTORY THRESHOLD COMPARISON – POSSIBLE CONCERNS
$500 – Current Policy
Raise Threshold to $1000
Raise Threshold to $3000
Impact
52,751 items on inventory between $500‐$2999.99
Removal of 19,188 items from inventory
Removal of 52,751 items from inventory
IT Security Concerns (sensitive data?, UGA employee info?, Research?)
IT Security – lower risk ‐ concern IT Security – No longer tracking with items under $500
19,188 items (plus future purchases)
IT Security – No longer tracking 52,571 items (plus future purchases)
Insurance Requirements
Majority of items reported to Insurance and Claims if scheduled for “off campus” use (Currently done in RUSS)
More responsibility will fall on the department to report insurance needs.
(All‐risk Policy $500 deductible)
More responsibility will fall on the department to report insurance needs. (All‐Risk Policy $500 deductible)
Unreported Losses
Low risk with most items on inventory. Losses identified during annual inventory
With less items on inventory, Greatest risk for undetected
undetected losses for items may losses
increase
INVENTORY THRESHOLD COMPARISON – POSSIBLE CONCERNS
$500 – Current Policy
Raise Threshold to $1000
Raise Threshold to $3000
Impact
52,751 items on inventory between $500‐$2999.99
Removal of 19,188 items from inventory
Removal of 52,751 items from inventory
Misuse of Equipment (Personal use, theft, fraudulent activity)
Lower risk with more items on record
Possibility of an increase in Greater possibility of an increase misuse due to lowered inventory in misuse due to lowered requirement
requirement
Reporting Needs
Can report on and provide more data (location, equipment refresh, costs, etc)
Less data will be available
Will not be able to provide data for the majority of UGA’s computers, personal devices
Public Relations Impact
UGA tracking more items than required could be seen as a positive – a risk will always exist when reporting lost equipment
Removal of 19,188 items – If questioned, how will this be viewed by public & taxpayers
Removal of 52,751 items – If questioned, how will this be viewed by public & taxpayers
INVENTORY THRESHOLD
What’s Next
 Have in-depth discussions within your area (please include Business
Managers, Deans, Directors, Inventory reps)
 Survey to gather feedback
 Report findings from survey