The university Athletics department uses vehicles to carry out their duties. These vehicles are obtained through various methods: leasing them from a dealership, purchasing them from a dealership, and obtaining them "on loan" from a dealership. Athletic vehicles purchased by the university are included on our accounting records as an asset (inventory).
The agreement between the university and the dealership selling us the vehicle can vary on the terms, but usually includes the university selling back a vehicle the university previously purchased through that dealership and then purchasing a new vehicle to be used for a set period of time or number of miles.
As changes occur within the inventory of athletic vehicles, these changes are communicated by the Athletics department to the Purchasing, Risk Management, and Accounting Services departments. Purchasing maintains all of the contracts related to these vehicles, Risk Management ensures that all vehicles in inventory are insured; and Accounting Services maintains a reconciliation of all activity in the inventory account. Journal entries are made by the accountant, as necessary, to record any loss on the exchange of a vehicle, or to write off the title transfer fee, which usually is not recouped by the university. This reconciliation is updated at least monthly and is provided to the Associate Controller Financial Reporting and/or his/her designee for review. This reconciliation is also published, at least monthly, on a shared drive to which all the above-mentioned departments have access to review.