D Logistics

D-1 General Information

This manual is produced to give all departments, faculty and staff information to enable them to make full use of the logistics operation and remain within the policy and guidelines of the university.
The logistics division is responsible for providing a full inventory service in support of all departments within the university. This responsibility includes the receiving, storing, issuing and delivery of a broad range of items. It is also accountable for the ongoing control and auditing of the university capital and fixed assets.

Stores are located throughout the basement in the main building. The store management office is room MB19. The telephone numbers of the management and supervisory group are Logistics Coordinator 2188, University Asset Controller 2048 and the Logistics Manager 2058.
The normal hours of operation are 08-00am to 5-00pm. Saturday to Wednesday. However in the event of an emergency, which could not be foreseen in normal hours, phoning 050-6973407 can obtain access.
The stores hold a variety of items, which are in regular use and also provide a delivery service to the departmental locations across campus. Stock can be easily obtained by following these procedures:

• FACILITIES: This store holds a wide range of regularly used inventory on behalf of FCD. This enables the department to carry out its scheduled repair, maintenance and construction obligations. In addition to routine requests there is an immediate ordering procedure in place to obtain any stock not currently held by the stores, but required the same day for the repair of any unplanned emergencies. All requests for items from this store must be placed through and authorized by the Facilities Department.

• INFORMATION TECHNOLOGY: Stock contains both Capital and Spares inventory for the University computer, telephonic and networking environment. This is held on behalf of IT for use throughout the university and is obtainable on the authority of the IT help desk for system replacement or planned initial installation by IT staff.

• STATIONERY: The holding of this store includes a full range of office accessories and the list of stock is readily available on the Banner system. Requisitions should be submitted through Banner by the authorized departmental requestor. This stock is for the use of Faculty and Staff only; students must purchase their personal requirements from the university bookstore or other external retailer.

• FOOD ITEMS: The stock supplied from this store is for the office use of Faculty and Staff. The listing of available items and the ordering and authorizing procedure is the same as that for the stationery items, which are ordered through Banner.

• HOUSING: A range of items authorized for use in the university residential accommodation is held. The range of goods includes electrical and kitchen equipment through to bedroom and bathroom accessories. All accommodation is fully equipped prior to occupation and the authorizing and ordering procedure for any replacement or additional items is through the housing section of Operations.

• OFFICE FURNITURE: Requisitions for the purchase of office furniture should be submitted to the commercial section. These will be checked against the stock held by the stores. Any available stock will be transferred to the asset holding of the requesting department and removed from the purchase order. The commercial section will process the balance of the requisition in the normal way for supply externally.

D-2      Inventory Auditing and Stocktaking

STORES: Stock held in the stores will be audited by both an annual inventory audit and on an ongoing scheduled cycle count basis.
a) ANNUAL INVENTORY: The total stores stock will be audited on a planned basis at the end of each financial year. The audit team will be composed of the university auditor a financial department representative and a member of stores management. The audit records will be filed for future audit for a period of three years and a copy passed to the financial comptroller.
b) CYCLE COUNT: The Logistics Coordinator is responsible for ensuring that random checks of the stock held in each of the stores are carried out. These checks will be sequential to ensure that all stock and related transactions are audited at least twice per annum. All counts will be dated and recorded on the stock records and the results are to be available for inspection by the auditors.

CAPITAL ASSETS: Assets purchased with an initial value of 3000 Dirhams or above are classified as capital and depreciated in line with the university financial policies. These items will be subjected to an audit twice per year by the asset controller as per the asset policy and procedures.

FIXED ASSETS: Purchases valued below 3000 Dirhams (excluding Furniture) but which have a life expectancy of three or more years are designated as fixed assets. The auditing responsibilities for this inventory are as follows.
a) All fixed asset inventory with a value of between 2000 and 3000 Dirhams will be audited once per year by the asset controller.
b) The head of the holding department is responsible for ensuring that an audit of all fixed assets with a purchase value below 2000 Dirhams is carried out annually. A listing of all registered items in this category should be requested from the asset controller. The head of department is required to sign a certification of the results, which must be submitted to the asset controller on completion. The asset controller is responsible for notifying the Vice Chancellor For Finance and Administration of any department, which fails to carry out this annual stocktaking. He is also responsible for maintaining files of all audit records for a period of three years and providing access to the internal and external auditors.
c) The asset controller will carry out unannounced audits at any location throughout the university on an unscheduled basis.

D-3                 Capital & Fixed Assets Policy

D-3-1 Introduction

Dean’s, Directors or Departmental Heads are accountable to the chancellor for the security of all assets assigned to their respective departments. They are also responsible for immediately notifying the asset controller (Ext 2048) of all movement or loss of any asset. The asset controller is accountable for ensuring that an annual inventory audit of all university assets is carried out.  The records of all audits will be retained by the asset controller for inspection by both the internal and external auditors for a period of three years. The control of all assets will be carried out under the attached procedures.

D-3-2 Guidelines
 
Capital assets are those items, which have a purchase value of 3,000,Dhs or more. Fixed assets are moveable items with a value below 3,000 Dhs (excluding furniture) but that have an expected service life exceeding three years plus items that are classified as attractive and listed in the attached appendix. All capital assets will be audited twice per year by the asset controller and fixed assets once per annum as per the attached procedures. Items, which are specifically purchased to be destroyed or dismantled for an authorized experimental purpose or are permanently installed or fixed to a building are not classified as assets. Attachment by a utility or electrical cord does not imply a permanent attachment.

All items, which qualify as capital or fixed assets must be recorded in the university Banner fixed asset module regardless of the source of receipt. Property financed and received from the government will be placed on the inventory records at the actual cost on the transferring documentation. Items received without a value will be assigned one based on the value established with the donor or at an estimated market value obtained locally or finally by the finance department at an estimated value compared with any similar item previously received.

Departments can obtain a listing of all capital or fixed assets held by the department, by location, cost center or Custodian from the asset controller at anytime.

The following procedures relate to the handling and control of the university assets. No variation is permitted without the written authority of the Vice Chancellor for Finance and Administration.

D-3-3 Capital & Fixed Assets Procedures

• PURPOSE: These procedures define the university asset policy relating to control of all materials, which are designated assets. They apply to all departments of the university and no variation is permitted without the written approval of the Vice Chancellor for Finance and Administration.
• ASSET DEFINITION: The University has defined its moveable assets into two categories they are Capital and fixed assets. Capital assets are any item or material, which has an individual purchase price of 3,000 Dhs or above. Fixed assets are items with a value below 3000dhs (excluding Furniture) but that have an expected service life exceeding three years. This category includes items that are considered attractive and are listed in the fixed asset appendix to these procedures. Any equipment or material that is received as a gift or is funded by the government without a donated price will be valued by the finance department at a fair market value and included as above where necessary.
• REPAIRS & ADDITIONS: The following guidelines should be used for repair or additions to the university assets.
• Repair or maintenance expenditure shall be recorded as a current expense regardless of amount. This expenditure is one that maintains or returns an asset to its original level of serviceability or the life of service, such as painting, repair, replacement parts or normal servicing.
• Additions to equipment should not be individually recorded as an asset. Except when the addition and the original item are purchased within a 12 months period, the addition becomes an integral part of the original item and substantially raises the value of the functional unit. Where the combined value exceeds 3000Dhs the new item will be declared as a capital asset.
• RECORDING: All capital and fixed assets will be recorded, tagged and accounted for in the university Banner fixed asset module.
• REPORTING: Assets acquired through the  Commercial Section are automatically tagged and recorded on receipt. Assets received by any other method including direct purchasing, gifts, transfers or items of value constructed for permanent use within the university, must be reported immediately by the head of department to the asset controller, (Ext 2048). Items that are received on loan, rental basis or are purchased to be dismantled for authorized university projects are not classed as assets and therefore do not need to be reported unless they later become the property of the university.
• EQUIPMENT IDENTIFICATION: To individually identify and control the movement of equipment the asset controller will assign a unique university identification number (Tag) to each item. This number will be attached to the relevant piece of equipment at the time of receipt or immediately on notification of receipt.
• ASSET SECURITY: The Deans, Directors and Heads of departments are accountable to the chancellor for the security of all assets assigned to their department. This accountability can not be delegated, however for the purpose of practicability it is recommended that each department appoint an assistant property officer who will regularly liaise with the asset controller on behalf of the department. It is the responsibility of each department, which acquires and holds the assets of the university to ensure such property, is:
  1. Reported when acquired.
  2. Listed, regularly inventoried and safeguarded.
  3. Declared for disposal when no longer required.
  4. Any authorized fabrication or cannibalization of items considered assets are reported.

Prior written approval of the departmental head must be obtained for any off campus use of university property (by filling out the Off campus permission form (Form #: FA-OPD-099) and forwarding the same to Logistics for system update.) Approval documents must identify the specific off campus location, the property Tag number, the responsible individual, the period of removal and the authorized purpose of the off campus use. The approval document shall be retained by the authorizing department for audit and copies provided to both the asset controller and the individual responsible for the off campus use. All property authorized for temporary off campus use is subject to the normal inventory verification procedures. Any individual who removes property from the campus without authorization will be subject to the university disciplinary procedures.

LIBRARY BOOKS: A detailed inventory record of books and other library holdings shall be constantly maintained by the library administration. Additions will be recorded at cost as of the date of acquisition and/or fair market value for all donations. An independent party will be appointed to appraise any item donated that is estimated to have a value of more than 3000Dhs. All additions and deletions will be recorded and reported to the finance department prior to the fiscal year ending.

HOUSING & DORMITORIES: Assets held in the Faculty or staff housing and student dormitories are to be listed, checked and signed for by the incoming occupant on arrival in the accommodation. The resident will be held accountable for all assets issued to the property, which will be checked prior to departure and any discrepancies will be noted and accounted for before university clearance. The assets in any accommodation not occupied during the year including housing stores or non-resident locations are to be audited annually by a nominated representative of the heads of these departments. A certificate of audit completion, highlighting any variances to the system listing will be submitted for signature to the head of department and forwarded to the asset controller for filing and auditor inspection. The asset controller will produce an asset listing on request at any time and will be accountable for ensuring that a yearly audit certification is filed annually.

TRANSFERS: University property may be transferred from one department to another within the university by the agreement of both departments. However, in all instances the giving department must inform the asset controller of the change by submitting a “Change of Location Form” (Form #: FA-OPD-035). The new location will then be updated in the asset records and depreciation will be charged to the receiving department from that date.

Property may only be transferred to another institution outside of the university via the authorized asset disposal policy. Only when the university as a whole has no need for the equipment will such assets be considered for external transfer and under no circumstances will assets be moved off campus without following the designated disposal procedures.

DISPOSAL: It is the policy of the university to dispose of excess property in a manner that will maximize the return or benefit to the university. The university has authorized disposal procedures, a copy of which can be obtained by any department from the asset controller (Ext 2048). Direct departmental sale of university property is prohibited.

Listings of property available for disposal will be shown on the university web page (under the Logistics Division’s Surplus section) and this information will be updated periodically.

ASSET VERIFICATION: Scheduled audits to verify the accuracy of the university records will be carried out as follows. The asset controller will audit all Capital assets twice per year and fixed assets with a purchase value of between 2000 and 3000Dhs annually. He will also audit any additional items that are identified and listed as attractive in the attached appendix. The holding department will arrange an inventory of fixed assets below these values annually. Departmental heads remain accountable for all property and on approving and signing any resulting inventory listing will certify that a thorough investigation has been carried out to locate any missing property. A report of all missing items including values will be submitted by the asset controller to the finance department for action to remove the items from the university records and charge the offending department with the relevant costs.

D-4 Asset Disposal Policy

D-4-1 Introduction

• Subject: The disposal of surplus or obsolete furniture, equipment or materials from all departments within the university.
• Purpose: It is the purpose of this policy to advise all departments of the procedures and authority for disposing of any university assets.
• Scope: All furniture, equipment or materials, which are identified as surplus or no longer required due to normal wear, damage or obsolescence.

D-4-2 The Policy

The logistics manager is responsible for the storage, reissue or disposal of all surplus or obsolete furniture, equipment or materials.

• All departments, both academic and administrative, will report unwanted or surplus university assets to the logistics manager for redistribution or disposal.
• The logistics manager will maintain an inventory listing of all surplus items. A copy will be provided to the Commercial Section for reference when an asset requisition is received. Any department that requisitions items that are to be supplied from surplus will have the opportunity to inspect the item to ensure its condition and serviceability are acceptable.
• Internal transfer of surplus items will be valued at the depreciated value defined by the finance department. The logistics manager is responsible for ensuring that the change of location of any transfer is recorded in the Banner asset system. Any ongoing depreciation expenses will thereafter be charged to the new department as per AUS Financial Policies & Procedures section 4.2 Paragraph 7.
• Surplus items not required by internal departments may be offered for sale to the public or donated to a not for profit organization. Donations of any surplus items to non-profit entities will be with the approval of the Vice Chancellor of Finance and Administration. The proceeds of all sales will be remitted as revenue to the university.
• It may be occasionally necessary to leave large items in the declaring department for a short period of time until transfer or external sale is completed.
• The necessary procedures in support of the above policy are attached.

D-5 Surplus Asset Declaration & Disposal Procedure

D-5-1  Intent

To establish a procedure to facilitate the declaration of surplus or obsolete furniture, equipment or materials. The internal transfer of the same or disposal by sale and to account for funds generated in accordance with Finance Department policy No. B-4-4

D-5-2 Scope
All furniture, equipment and materials declared surplus or obsolete under the following classifications:

• “Surplus” will be any items considered no longer required by a department after taking into account a forward planning review of two years or more.
• “Obsolete” will include all items of furniture, equipment or materials rendered useless due to normal wear and tear, breakage beyond economical repair or considered valueless for trade-in purposes.
• “Technically Obsolete.” is any laboratory or technical equipment that has been rendered obsolete due to technological advances and may be used as trade in value against new equipment

D-5-3 The Procedure

• DECLARATION: - The departmental head may declare any item surplus or obsolete by completing and signing a Declaration Form (Form #: FA-OPD-031) and forwarding the form to the logistics manager for action.

• VALUATION: - the logistics manager in consultation with the Finance department will determine the value of items for disposal.

• HANDLING AND STORAGE: - Surplus or obsolete items may be removed immediately from the declaring department for storage in a surplus area defined by the logistics manager. However, where this is impractical the item will remain in its location until disposal action is taken.

• IDENTIFICATION: - The logistics manager will ensure identification of all declared items with a surplus tag upon receipt.

• TRADE-IN OF SURPLUS: - Where the replacement of an item declared surplus is required by the originating department, the purchase requisition must be cross referenced with the surplus tag number to inform the commercial section of the trade-in possibilities. Should the originating department not require a replacement, the purchasing manager may use the item as a trade-in against another department.
 
• INTERNAL TRANSFER: - The logistics manager will regularly circulate via the web a list of surplus items considered acceptable for placement to all academic or administrative departments of the university. Should any department require an item from the surplus inventory they should contact the logistics manager and arrange an inspection. Acceptable items will be formally transferred.

• DISPOSAL SALE: - Surplus or obsolete articles will be offered for sale to the general public. The general public shall also include faculty, staff or students. Commercial trading companies and the public will be invited to tender by competitive sealed bids or the holding of a public auction.

i) The sealed bids will be opened and stamped in the presence of The Operations Director, The Logistics Manager and The Internal Auditor. In the event that any of these three not being available a replacement independent senior manager will be nominated.

ii) All sales payments to the general public must be paid to the finance department prior to collection of the purchased goods. In all cases the transaction will be completed by the issuing of a sales receipt and a gate pass a copy of which will allow the removal of the items from the campus.

iii) All sales will be made “Final As Is” without warranty or liability to the university. It will be the purchaser’s responsibility to arrange for any necessary packing and removal of items purchased at their own expense.

• UN-SALEABLE MATERIAL: - Should any item be found to be un-saleable the logistics manager will declare the items of no value and scrap them.

• SALES: - The proceeds from all sales will be credited as revenue to the university. The logistics manager will submit a report of all dispositions to the Comptroller.

• DECLARATION FORMS: - These forms can be obtained from the university stores AUS’s Web site under F&A Forms section and are to be completed by the declaring department and distributed as follows.

i) Original plus first copy to the logistics manager for inventory cataloging and stock valuation.

ii) Second copy to file within the declaring department for audit control.

•  SALES & RECEIPT FORMS: - (Form #: FA-OPD-029). The completion of sales and revenue forms is mandatory for ALL sales and copies distributed as follows.

i) The original will be sent to the finance department with the received funds for revenue control.

ii) The first copy will be given to the purchaser confirming receipt of payment and used as authority to remove the goods from campus.

iii) The second copy will be retained by the logistics manager and attached to the surplus declaration form as a record of disposal and be made available for audit for a period of three years.

No variation to these policies and procedures is authorized without the written consent of the Vice-Chancellor of Finance and Administration.